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Gold Prices Pull Back From 4-Month Highs

Published 05/01/2018, 08:00
Updated 05/01/2018, 08:02
© Reuters.  Gold prices edge lower but remain near 4-month peak
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Investing.com - Gold prices pulled back from a four-month peak on Friday, as the U.S. dollar regained some ground ahead of the release of U.S. employment data due later in the day.

Comex gold futures were down 0.15% at $1,319.50 a troy ounce by 09:00 a.m. ET (13:00 GMT), off the previous session's four-month peak of $1,327.20.

The greenback had come under pressure after the release of mixed U.S. economic reports on Thursday.

Payrolls processor ADP reported on Thursday that U.S. private employers added 250,000 jobs in December, well above economists' expectations.

A separate report showed that U.S. jobless claims increased by 3,000 last week to 250,000, disappointing expectations for a 6,000 decline.

The data came a day after Federal Reserve policymakers acknowledged, in the minutes of the Fed's December meeting released Wednesday, that the U.S. labor market and economic activity remain strong, despite persistently low inflation.

The minutes seemed to suggest that the central bank will continue to raise rates gradually but the pace could pick up if inflation rises.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.13% at 91.72.

Gold is sensitive to moves in the dollar. A stronger dollar makes gold more expensive for holders of foreign currency.

Elsewhere on the Comex, silver futures slid 0.34% to $17.21 a troy ounce.

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