Gold after U.S. employment data was lose its price second day. Those data was supported the dollar, but gold fell as much as 0.4 percent to $1,187.27 an ounce, and traded at $1,194.50 now.
“We suspect that gold will likely be at its most vulnerable over next three to six months, which is when we see the highest likelihood of a rate hike that should sweep the dollar higher,” Edward Meir, an analyst at INTL FCStone Inc. in New York, wrote in a note. “The recent rout in energy prices will lower inflationary expectations and increase real interest rates, yet another reason that we would be cautious about gold’s upside potential.”
Gold is 0.7 percent lower this year, in part as the Fed ended an asset-purchase program that failed to stoke inflation.
Gold futures for February traded at $1,193.60 an ounce on the Comex in New York. Silver fell to $16.280 an ounce.
