Gold slumps as dollar, stocks jump after FBI clears Clinton
Gold retreated on Monday as the U.S. dollar and stocks strengthened after the FBI said it stood by its earlier finding that no criminal charges were warranted against Democrat Hillary Clinton just two days ahead of the U.S. election.
Spot gold was down 0.7 percent at $1,295.01 an ounce at 0127 GMT. The metal hit a low of $1,287.86 earlier in the session.
U.S. gold futures fell 0.7 percent to $1,295.80 per ounce.
Stocks rose and the dollar rallied against its major rivals on Monday after the FBI said it stood by its earlier recommendation that no criminal charges were warranted against U.S. presidential candidate Clinton.
The dollar index, which measures the greenback against a basket of major currencies, was up 0.22 percent 97.283.
U.S. job gains in October showed continued progress towards the Federal Reserve’s goals, two Fed policymakers said on Friday, with both signalling they would support a rate increase at the U.S. central bank’s next meeting, in December.
U.S. employers maintained a strong pace of hiring in October and boosted wages for workers, which could effectively seal the case for a December interest rate increase from the Fed.
The U.S. labor market is close to full strength and the economy could at some point overshoot the Fed’s goals for employment and inflation, Fed Vice Chairman Stanley Fischer said on Friday.
Business activity in the euro zone during October was not as robust as first thought, a survey showed on Friday, adding to signs the bloc’s recovery remains on track but is struggling to gain momentum.
Hedge funds and money managers raised their net long position in COMEX gold contracts for the second straight week, in the week to Nov. 1, and increased it in silver for the first time in five, U.S. government data showed on Friday.
Gold prices in India swung to a discount in the week to Nov. 4 as a rally in prices dampened retail demand and prompted jewelers to reduce purchases, while demand in leading consumer China went up on safe-haven buying on worries over the U.S. presidential election.
Source: Reuters
