The “yellow metal” loses its luster in the face of the rise of the dollar

Gold prices fell by 1 percent today, amid the rise of the dollar and the decline in expectations of the Federal Reserve (the US central bank) reducing interest rates in December, at a time when investors are awaiting a delayed US report on jobs.
Gold fell in spot transactions 0.6 percent to $4,055.20 per ounce by 1104 GMT, recovering from a decline of one percent earlier in the day. US gold futures for December delivery fell 0.7 percent to $4,053.80 an ounce.
The dollar index rose to a two-week high against major currencies, making gold more expensive for holders of other currencies.
The focus is now on the US September non-farm payrolls report due later in the day after being delayed due to the recent government shutdown, and the data is expected to provide more indications on the central bank’s policy path.
A Reuters poll showed that non-farm payrolls for September likely rose by 50,000 jobs, more than double August’s increase of 22,000 jobs.
The Federal Reserve will still lack much data at its monetary policy meeting on December 10, as the next jobs report has been postponed until December 16.
According to the CME’s Fed Watch tool, traders now expect about 34 percent to cut interest rates next month, down from 49 percent yesterday, Wednesday.
Non-yielding gold usually tends to rise in light of low interest rates and during times of economic uncertainty.
As for other precious metals, silver fell in spot transactions 1.4 percent to $50.66 per ounce, platinum fell 0.5 percent to $1,538.85, and palladium rose 1.1 percent to $1,394.74.