Gold Drops as Dollar Strengthens Before Fed Minutes, Jobs Data

Berita Jalatama, Gold fell as the dollar held gains before the release of minutes from the Federal Reserve’s last meeting amid expectations that the central bank will continue to wind back stimulus as the U.S. economy improves.

Bullion for immediate delivery lost as much as 0.3 percent to $1,228.25 an ounce and was at $1,230.90 at 9 a.m. in Singapore. Prices dropped 0.5 percent yesterday, the most since Dec. 30, as the dollar strengthened. Gold for February delivery was little changed at $1,230.59 on the Comex in New York.

The Federal Open Market Committee decided at the Dec. 17-18 meeting to cut monthly bond purchases to $75 billion from $85 billion from this month, and San Francisco Fed President John Williams said yesterday that the program may end this year. The Bloomberg Dollar Index advanced for the sixth time in seven days before the release today of private U.S. employment data. Bullion typically trades counter to the dollar.

The ADP Research Institute may say that private payrolls in the U.S. rose by 200,000 workers last month, after gaining 215,000 in November, according to the median estimate of economists compiled by Bloomberg. The Labor Department’s nonfarm payrolls data is scheduled for Jan. 10.

Silver for immediate delivery lost 0.3 percent to $19.8275 an ounce. Prices slumped 1.5 percent yesterday, the most since Dec. 30. Platinum and palladium were little changed at $1,414.66 an ounce and $741.20 an ounce respectively.

(Source: bloomberg)