Gold price staggers higher after grim month
New York (Nov 30) Gold was on course for its worst month in two years as institutions deserted the metal as the dollar rose and a December hike in US interest rates moved closer.
Even after a modest rally as US markets re-opened after the Thanksgiving break, the gold price was heading for a near 7% fall in November.
Next up for gold fans is the US non-farm payrolls number later this week.
After a bumper 271,000 jobs created in October, economists are expecting around 205,000 this time, but that dip is unlikely to change the US Federal Reserve’s mind over the timing of a rate rise according to the consensus view.
Technical analysts at Scotiabank repeated that having gone through US$1,066 last week the next key test for the price is US$1,045.
Matrex Spectron’s David Govett said: “With a firm dollar and all round weak commodity prices, the market had been in the doldrums all week and with Thanksgiving in the US, the scene was set for another drop.
“Once again we find ourselves on multi year lows with no real sign of recovery. There is some physical demand around here, but nothing like the amount needed to stage a comeback in gold prices.”
Spot gold was US$5 higher at US$1,063, silver was flat at US US$14.11, while platinum eased US$5 to US$830.