What’s next? – GOLD 07.12.17

Thu, Dec 7 2017, 09:48 GMT

by Fort Financial Services

Gold futures were lower in early trading hours on Thursday, with market participants looking ahead to fresh economic releases in Europe and the United States later in the day.

 

On the Comex division of the New York Mercantile Exchange, gold futures were up 0.49 percent at $1.259.90 a troy ounce as of 07:25 GMT.

 

The yellow metal traded close to six-week lows on Wednesday as the greenback gained support in the light of easing uncertainty over a possible US government shutdown.

 

In the previous session, various reports pointed to a potential deal between GOP leadership in the House of Representatives and Senate to pass a bill and avoid a government shutdown from December 8 to December 22.

 

On the data front, ADP/Moody's Analytics monthly report showed US private payrolls adding 190,000 jobs in November, above an initially forecasted 185,000.

 

The US dollar index, which gauges the greenback against six major currencies, was trading at 93.64 by the time of this writing, up 0.06 percent.

 

Dollar-denominated gold is sensitive to interest rate moves. A stronger base currency makes the metal more expensive and less competitive for investors holding other currencies.

 

On Wednesday, President Donald Trump said the US will now recognize Jerusalem as the capital of Israel, a controversial move that has already been received with strong criticism in the international community, especially among Arab nations.

 

According to some analysts, this announcement could bring some consequences to the administration, possibly weighing on the dollar.

 

In the American session, traders will get a new look at the weekly initial jobless claims count as of 13:30 GMT, with an expected increase to 240,000 from a prior week 238,000 reading.

Published on Thu, Dec 7 2017, 09:48 GMT

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