Gold edges down

GOLD prices yesterday held near a one-week low hit in the previous session, as the dollar firmed after largely upbeat US economic data reinforced the prospects of another rate hike by the Federal Reserve next month.

Spot gold was down 0,1 percent at $1 268,61 per ounce as of 0740 GMT. On Friday, the precious metal touched a one-week low of $1 265,16. US gold futures for December delivery were nearly unchanged at $1 269. The dollar index, which measures the greenback against a basket of six major currencies, last stood at 94,990, trading within sight of an October 27 peak at 95,150, a more than three-month high.

“The strengthening of the dollar due to strong US data has kept gold prices in check. The movement has been quite consistent trading within $1 275 an ounce range,” said Brian Lan, managing director at dealer GoldSilver Central in Singapore.

The dollar touched its highest level in nearly eight months against the yen. Markets are increasingly confident the Fed will hike interest rates in December, which has weighed on the precious metals complex, said Jordan Eliseo, chief economist at gold trader ABC Bullion. US jobs growth accelerated in October, although wage growth was tepid, adding to the Fed's assessment last week that “the labour market has continued to strengthen”, with the sluggish wage data doing little to change expectations.