Gold Pares Gains as Dollar Rebounds Following US Jobs Data
Gold prices pared earlier gains on Tuesday, pressured by a strengthening dollar and Treasury yields after rising U.S. job openings signalled diminishing odds of large rate cuts by the Federal Reserve.
Spot gold was up 0.5% at $2,648.76 per ounce, as of 02:07 p.m. ET (1907 GMT), after rising as much as 1% earlier in the session. U.S. gold futures settled 0.7% higher at $2,665.40.
"Stronger than expected job openings along with strong services ISM all indicate that the economy is strong, but there is this lingering threat of inflation that will keep the Fed on hold perhaps through March," said Peter Grant, vice president and senior metals strategist at Zaner Metals.
The dollar index (.DXY), opens new tab was up 0.3% following data that showed a stable jobs market and a services sector that remained robust, suggesting that the Fed will likely slow the pace of its rate-cutting cycle.
Data showed that U.S. job openings unexpectedly increased in November, although hiring slowed. Job openings rose 259,000 to 8.098 million by the last day of November.
Uncertainty surrounding the tariff policy in the run up to Trump's inauguration on Jan. 20 has fuelled concerns about future moves in U.S. policy.
Source : Reuters
