Gold Prices Settle Lower as Dollar Strengthens; Silver Prices also Slip
Gold prices fell in trading on Monday as the U.S. dollar strengthened after Friday’s stronger than expected jobs report for the month of September. Silver prices also slipped on Monday.
On Friday, the Labor Department reported that the U.S. economy added 114,000 jobs in September, while the unemployment rate fell to 7.8%. This is the first time in nearly four years that the unemployment rate fell below 8%. The surprise drop in unemployment rate has raised concerns over the longevity of Federal Reserve’s latest bond buying program, which was announced last month.
The strong jobs report also boosted the U.S. dollar on Monday. Speaking to Reuters, David Wilson, analyst at Citigroup, said that if we get slightly better U.S. data going forward, which gives more support for U.S. economic recovery, we get a stronger dollar. Wilson also said, “Europe is still continuing to struggle, and that would suggest that the rally is done for the time being, although I’ m not saying gold wont see more upside further out.”
Spot gold fell 0.35% to $1,774.30 an ounce on Monday. Gold futures for delivery in December on the Comex division of the New York Mercantile Exchange settled at around $1,775 an ounce.
Silver prices also slipped in trading on Monday. At last check, spot silver was trading 1.6% lower at $34.02 an ounce.
In late trading on Monday, the iShares Silver Trust (ETF) (NYSE: SLV) was down 1.42%, the ProShares Ultra Silver (ETF) (NYSE: AGQ) was down 2.77%, and the ProShares UltraShort Silver (ETF) (NYSE: ZSL) was up 2.74%.
Platinum and palladium also fell in trading on Monday. At last check, spot platinum was trading 0.6% lower at $1,696.60 an ounce, spot palladium was trading 1.1% lower at $656 an ounce.
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Post Written By: Ed Liston
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.
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