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The price of gold maintained its two-week low, Reuters reported, due to investor unease in the uncertainty over the outlook for U.S. interest rates, as well as inflation data from China and a slight drop in the dollar.
The price of gold maintained its two-week low, Reuters reported, due to investor unease in the uncertainty over the outlook for U.S. interest rates, as well as inflation data from China and a slight drop in the dollar.
As quoted in the report:
Friday’s U.S. monthly employment report showed 80,000 workers were added to non-farm payrolls in June, close enough to expectations that investors had little conviction for aggressive bets one way or another on a third round of bond-buying.
Edel Tully, a UBS analyst, commented:
The choppy price reaction following the employment numbers did not do gold any favours. It highlighted the yellow metal’s ability to swing quite sharply, a quality that many participants find unattractive. Some investors decided that the risks to holding gold in such an environment are too high, particularly with light liquidity feeding the likelihood for sharp knee-jerk reactions.
