Gold (XAU/USD) is declining for the second day in a row. The reason of such a dynamic is that investors have turned to stocks.
Gold sinks in Asia with markets waiting for clues from Fed
On Monday, gold dived in Asia, with financial markets waiting for the Fed comments this week after it reviews its interest rates.
February delivery gold futures gained 0.11% showing a reading of $1,249.80 a troy ounce in New York.
This week the Fed is generally expected to raise its rates approximately by a quarter point.
The previous week on Friday, gold edged down to a four-month minimum low and reported the largest weekly dive since May after Friday’s stronger-than-anticipated American jobs report underlined hopes for a rate lift by the Fed at its upcoming gathering.
In November, the American economy generated up to 228,000 jobs, according to the Labor Department. The given outcome exceeded the 200,000 estimate by financial experts, while the unemployment rate was intact at 4.1% for a second consecutive month.
In the USA wages gained 0.2% for the month as well as 2.5% from 2016 that happened to be below estimates of respectively 0.3% and 2.7%.
Risk-on is back on the market. Riskier currencies and stocks are in favor. Gold is rising too as investors try to hedge.
Riskier currencies and stocks are in favor of investors. Surprisingly, gold rallies too. Let’s have a closer look.
Congratulations! Gold has just opened a new era... or, rather, reopened...