Surge In U.S. Dollar Could Drag Gold Lower Next Week – Analysts
The gold market could struggle to find upside momentum next week as U.S. bond yields and a U.S. dollar surge higher in continued reaction to what economists have called a “solid” July employment report.
Friday’s nonfarm payrolls report, which showed that 209,000 jobs were created last month is taking its toll on gold prices ahead of the weekend. After hitting a seven-week high Tuesday, The yellow metal is ending the week in solidly negative territory, putting an end to three consecutive weeks of positive gains. December gold futures last traded at $1,263.80 an ounce, down almost 1% from the previous Friday.
Silver is also ending a three-week winning streak as the grey metal is dragged down by gold. September silver futures last traded at $16.27 an ounce, down more than 2.5% from last week.
According to analysts, a major headwind for gold in the near-term is the U.S. dollar, as it bounces off a 13-month low seen at the start of the week.
Read the full story on Kitco.