gold futures

gold futures

November 29th, 2016

Gold futures prices slipped on Tuesday as the dollar stabilized after falls in the previous session as investors turned their attention to upcoming U.S. economic reports and Wednesday’s OPEC meeting.

Gold was trading at $1,187.0 a troy ounce by 0857 GMT. The precious metal ended the previous session with gains of 0.39%.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was last at 101.33.

Gold is priced in dollars and becomes less attractive to holders of other currencies when the dollar rises.

Investors were waiting on a raft of U.S. data, including a second look at third quarter growth later in the day, ISM manufacturing data on Thursday and Friday’s nonfarm payrolls report for November.

Upbeat data would further feed into expectations for an interest rate hike by the Federal Reserve next month.

According to’s Fed Rate Monitor Tool, 97.8% of traders expect the Fed to raise interest rates at its policy meeting in December.

Gold is sensitive to moves in U.S. rates, which lift the opportunity cost of holding non-yielding assets such as bullion, while boosting the dollar in which it is priced.

Prices of the yellow metal have fallen around 6.6% so far this month on expectations that increased U.S. fiscal spending under a Trump administration will spur economic growth and inflation, which would ultimately lead to an era of higher interest rates.

Traders were also keeping an eye on oil prices as they assessed the likelihood that OPEC members would reach a deal on output cuts ahead of Wednesday’s key meeting.

A production cut would prop up oil prices and bolster the currencies of oil exporting countries such as Canada and Russia.

Elsewhere in metals trading, silver futures were at $16.65 a troy ounce, while copper futures traded at $2.637 a pound.

Copper prices have climbed almost 20% this month on hopes that infrastructure plans in top consumers China and the U.S. will bolster demand for the industrial metal.