Nov 21 (Reuters) - Gold prices slipped on Friday and
were on track for a weekly fall, as a stronger-than-expected
U.S. jobs report reinforced expectations that the Federal
Reserve will refrain from cutting rates at its December meeting.
FUNDAMENTALS
* Spot gold was down 0.2% at $4,062.79 per ounce, as
of 0157 GMT. Bullion has lost 0.3% so far this week. U.S. gold
futures for December delivery edged 0.2% higher to
$4,068.10 per ounce.
* The closely watched U.S. Labor Department report, delayed
by the federal government shutdown, showed that September
nonfarm payrolls increased by 119,000, more than double the
estimated increase of 50,000.
* Traders now see nearly a 39% chance for a Fed rate cut
next month, down from 60% earlier this month.
* Gold, a non-yielding asset, tends to do well in
low-interest-rate environments.
* The dollar was on track on Friday for its strongest
weekly performance in more than a month, as investors wagered
the Fed is unlikely to cut rates next month. A stronger dollar
makes greenback-priced gold more expensive for holders of other
currencies.
* Minutes from the Fed's October meeting released on
Wednesday showed it cut interest rates even as policymakers
cautioned that doing so could risk entrenched inflation and a
loss of public trust in the U.S. central bank.
* Chicago Fed President Austan Goolsbee repeated on Thursday
he is "uneasy" about frontloading interest-rate cuts,
particularly with progress on inflation towards the Fed's 2%
goal looking to have stalled and starting to go the wrong way.
* Cleveland Fed President Beth Hammack warned on Thursday
that cutting rates further right now carries a wide range of
risks for the economy. Fed Governor Lisa Cook sees a risk of
outsized asset price declines.
* SPDR Gold Trust, the world's largest gold-backed
exchange-traded fund, said its holdings fell 0.41% to 1,039.43
tons in the previous session from 1,043.72 tons on Wednesday.
* Elsewhere, spot silver slipped 0.4% to $50.39 per
ounce, platinum climbed 0.4% to $1,517.95, and palladium
added 0.3% to $1,381.22.
DATA/EVENTS (GMT)
0700 UK Retail Sales MM, YY Oct
0700 UK Retail Sales Ex-Fuel MM Oct
0745 France Business Climate Mfg, Overall Nov
0815 France HCOB Mfg, Svcs, Comp Flash PMIs Nov
0830 Germany HCOB Mfg, Svcs, Comp Flash PMIs Nov
0900 EU HCOB Mfg, Svcs, Comp Flash PMIs Nov
0930 UK Flash Mfg, Svcs, Comp PMIs Nov
1445 US S&P Global Mfg, Svcs, Comp PMIs Flash Nov
1500 US U Mich Sentiment Final Nov
(Reporting by Brijesh Patel in Bengaluru; Editing by Sherry
Jacob-Phillips)
Print
