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Gold edges down on rate hike views after strong U.S. jobs data

Gold edges down on rate hike views after strong U.S. jobs data

"We have a bearish outlook for gold ... and yield-chasing behaviour and a rosy economic outlook should pressure the yellow metal lower," said OCBC analyst Barnabas Gan.

 

"The higher interest rate environment will actually fuel further risk-taking and is not good for gold."

Futures markets reacted on Friday after the jobs data by pricing in the risk of three, or even more, rate rises from the U.S. Federal Reserve this year.

The Fed last week held interest rates unchanged, but raised its inflation outlook and flagged "further gradual" rate increases.

Higher interest rates make gold less attractive to investors because it does not pay interest.

Continued: https://finance.yahoo.com/news/gold-edges-down-rate-hike-views-strong-u-040409737--finance.html