Gold slipped below $3,950 in Asian trading Tuesday as a firmer dollar and interest-rate expectations pared Monday’s rebound, while traders weighed whether cheaper oil would ease inflation pressure.
FXStreet reported that bullion had fallen back under the threshold during the Asian session. The outlet linked the move to renewed dollar strength and expectations for higher rates. ING had described the previous session’s rise as reflecting cheaper oil and buyers returning after late-week losses.
ING commodities strategists Warren Patterson and Ewa Manthey put gold’s gain on Monday, Nov. 2, at 1.85%. Reuters separately reported that December gold futures settled 1.8% higher at $3,969.60 per ounce. Spot gold was up 2.1% at $3,954.41 per ounce at 1:49 p.m. ET Monday, Nov. 2 (18:49 UTC), Reuters reported.
Brent crude futures settled Monday at $104.77 per barrel, down $8.66, or 7.63%, according to Reuters. ING said the drop in oil reduced one source of inflation pressure that had been weighing on gold.
In a Nov. 2 note, ING said gold had fallen 3.65% to $3,874.62 per ounce late the previous week, reaching a one-year low. The strategists linked that decline to higher oil prices, inflation concerns, expectations for elevated rates and selling associated with technology-stock losses.
ING said the rebound remains vulnerable while the dollar firms and markets anticipate higher rates. The Institute for Supply Management reported that its manufacturing PMI rose to 55.5 in October from 54.5 in September, extending the sector’s expansion to a 10th consecutive month. FXStreet cited the data, rate expectations and recovering bond yields among factors supporting the dollar.
The U.S. Bureau of Labor Statistics scheduled the release of its September Job Openings and Labor Turnover Survey (JOLTS) for 10 a.m. ET Tuesday, Nov. 3.
