Gold prices fell Thursday, as very strong U.S. economic data made the case that the Federal Reserve will take a more aggressive approach on monetary policy this month. The Fed has been loathe to raise interest rates, during the Obama administration, because of tepid economic performance during the "recovery" from the Great Recession of 2007. U.S. Jobs and housing reports were positive when released on Wednesday.
Gold futures for February 2017 closed down about 0.4% at $1169.40 per troy ounce on the Comex division of the New York Mercantile Exchange. The prices hit $1,162.20 a troy ounce earlier in the session.
Analysts noticed that this was weakest performance for gold since February.
Market anticipation of so-called "tighter" monetary policy weighs heavily on gold, which competes with yield-bearing bonds and other instruments whenever borrowing costs rise.
No comments:
Post a Comment