Gold Prices Flat on U.S. Rate Hike Expectations

Gold prices were under pressure early on Monday, after slipping from a one-month peak the previous week on prospects of further interest rate hikes, as investors focus on more outlooks from the U.S. Federal Reserve. Spot gold was stable at $1,173.06 per ounce. U.S. gold futures were flat at $1,173.80 per ounce.

The dollar index inched up 0.1 percent at 102.27. The latest data showed that U.S. employment climbed less than expected in December however, a rebound in wages indicated sustained labor market momentum which sets the economy for robust growth and more interest rate hikes in 2017. Hedge funds and money managers trimmed their bullish position in COMEX gold contracts for the eighth consecutive week in the week to Jan. 3, according to the U.S. Commodity Futures Trading Commission (CFTC) data.

Gold demand in Asia picked up last week on wedding season purchases in India, as prices moved to a premium in the country for the first time in more than a month. Traders anticipate demand to strengthen as a result of the upcoming Chinese New Year.

News are provided by InstaForex