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Gold retreats from 4-month high as worries about Friday’s U.S. jobs data limit gains

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Gold prices briefly touched a 4-month high on Monday as the U.S. dollar remained near a five month low against major currencies, but worries about hotter-than-expected wage growth reported in Friday’s U.S. November employment report pushed up Treasury yields limiting gold’s gains.

Price action
  • Gold prices for February delivery

    were down $1.10, or 0.1%, to $1,808 per ounce on Comex.

  • Silver prices for March delivery
    were off 4 cents, or 0.2%, at $23.21 per ounce.

  • Palladium prices for March delivery
    advanced $23.90, or 1.3%, to $1,925 per ounce, while platinum prices for January delivery
    rose $5.60, or 0.5%, to $1,032 per ounce.

  • Copper prices for March delivery
    gained 1 cent, or 0.2%, to $3.86 per pound.

Market drivers

Gold prices have steadily climbed higher over the past month, with the price of the most-active contract topping its 200-day moving average last week for the first time since June.

But Friday’s U.S. jobs data was “a big setback” for the yellow metal, said Craig Erlam, senior market analyst at OANDA. The issue is that the hotter-than-expected November jobs print, combined with hot wage-growth numbers, reinforced the notion that the Federal Reserve still has a long way to go in its quest to suppress inflation.

“We’re now more than four weeks into the recovery rally in gold and a corrective move of some kind may be on the cards,” Erlam said.


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