Bullion is struggling to compete for investor attention as borrowing costs continue climb. The US Federal Reserve is widely-tipped to hike interest rates next week for a third time this year. Most economists also forecast multiple rate increases next year as well via a gradual normalization strategy. Tighter monetary policy has been one of the driving factors pulling gold lower by almost -7.00% off its 2017 highs touched in early September. The US dollar recovering from multi-year lows has also dented demand for gold and other dollar-denominated commodities as they become more expensive for buyers in other countries. Investors will be eyeing US Nonfarm Payrolls data slated for release later in session for any final clues before the FOMC policy meet next week. Gold prices are edging modestly higher in Friday trade amid an upside pullback after yesterday’s substantial decline.
Gold Slips to 4-Month Low
Daily Analysis - 08/12/2017