Gold falls, as a persistently strong dollar finds fresh impetus
The metal is expected to remain under pressure, especially after surprisingly strong US jobs data bolstered the likelihood of a third rate hike at the Fed’s next meeting
Bengaluru — Gold held on to a small loss from the previous session on Monday, as the dollar firmed amid expectations of a US Federal Reserve interest rate hike in September and fear of escalating trade tension between the US and China. Spot gold was down 0.1% at $1,194.61 at 2.25am GMT, having fallen 0.4% in the previous session. US gold futures were almost flat at $1,200.30 an ounce. "The strong US nonfarm payrolls led to some modest downward pressure on gold…. Going forward though, the dollar will continue to weigh on gold, and as long as the dollar is strong, gold will remain constrained," said John Sharma, an economist at National Australia Bank. Stronger than expected US payrolls data on Friday cemented expectations that the US Fed will raise interest rates in September, in what would be its third increase this year. The dollar firmed against a basket of major currencies on Monday thanks to the jobs data and after US President Donald Trump warned tariffs on a further $267bn wor...
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