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Gold prices slumped to its lowest level in three weeks as some investors to think again about the projected interest rate of the United States (US) after the US jobs report was stronger than expected.
Quoted by Reuters, (02/07/2015), the price of gold for April delivery fell US $ 28.1, or 2.2 percent, to US $ 1,234.6 per troy ounce on the Comex division of the New York Mercantile Exchange. It was the lowest close since January 14, 2015.
The US Labor Department reported an additional 257 thousand new jobs in January, beating economists' forecast of 237 thousand.
Gold prices fell in response to signs of economic recovery paved the way for the US Central Bank or the Federal Reserve (Fed) to raise interest rates,
"The prospect of the Fed's rate hike will depress demand for gold as a safe haven asset," said Dave Meger, director of High Ridge Metal Trading Futures in Chicago.
In January, Fed officials reiterated his plan to raise interest rates which is the first time for almost a decade. Fed Governor Janet Yellen signaled the benchmark interest rate will be increased in June 2015.
But investors speculated slowing US economic growth in the fourth quarter of 2015 and fears of rising debt in the euro zone could prompt the Fed to postpone the planned increase in interest rates.
source: reuters.com
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