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Gold Dips Down After Trump Names Powell as Fed Chair

Published 03/11/2017, 08:34
Updated 03/11/2017, 08:40
© Reuters.   Gold dips down after Trump names Powell as Fed Chair.
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Investing.com - Gold prices inched down on Friday morning after President Donald Trump nominated Jerome Powell to chair the Federal Reserve on Thursday.

Gold futures for December delivery on the Comex division of the New York Mercantile Exchange fell 0.11% to $1276.72 a troy ounce as of 4:29 AM ET (8:30 AM GMT).

Powell, who was nominated as a Fed governor in 2012 by former President Barak Obama and confirmed in 2014, is considered dovish. He is likely to follow a similar monetary policy stance as Fed chair Janet Yellen. His nomination is subject to confirmation by the Senate.

Data on Thursday lifted expectations for an interest rate hike in December, which dragged on gold.

The U.S. Department of Labor reported Thursday that initial jobless claims fell 5,000 to a seasonally adjusted 229,000 for the week ended October 28, less than economist had expected. An upbeat nonfarm payrolls is expected at 8:30 AM ET (12:30 PM GMT) on Friday.

Gold prices are sensitive to moves higher in interest rates, which lift the opportunity cost of holding non-yielding assets such as bullion.

In other precious metal trade, silver futures decreased 0.16% to $17.109 a troy ounce, while platinum futures slipped 0.25% to $925.20.

Copper futures rose 0.25% to $3.146 while natural gas futures increased 0.41% to $2.946.

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