Gold Recovers on Monday at start of US Employment Week

Gold futures recovered from overnight weakness Monday, largely moving inversely to the U.S. dollar as markets continue to digest comments from Federal Reserve officials at their weekend symposium in Jackson Hole and while waiting for a key report on the U.S. labor market at the end of the week.

As of 1:25 p.m. EDT, Comex December gold was $1.10 higher to $1,326.90 an ounce. December silver was up 11.5 cents to $18.86.

The euro recovered to $1.11843 from an earlier low of $1.11580.

The precious metal initially came under pressure at the start of Asia-Pacific trading, with the December contract sliding to a two-month low of $1,317.20 an ounce. Analysts at the time blamed this on U.S. dollar gains in the aftermath of hawkish comments from Fed Chair Janet Yellen and Vice Chair Stanley Fischer, hinting at a possible U.S. interest-rate hike, as last week was winding down.

December gold was confined to a narrower-than-normal range for the day of $11.10, perhaps in part because London trading was closed for a holiday and many U.S. traders were away from their desks for late-summer vacations. Eventually, the December contract clawed its way back into slightly positive territory.

via Kitco

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