Gold fell on November 30
After posting moderate losses on November 28, gold moved lower on November 30 amid a stronger dollar. On November 30, the COMEX gold futures contract for February 2017 delivery fell 1.4% to $1,170.8 per ounce. The COMEX silver futures contract for March 2017 delivery closed the day at $16.41 per ounce—a fall of ~1.5%.
ADP non-farm payrolls and stronger dollar
The stronger US ADP (Automatic Data Processing) non-farm payroll report dented the sentiment in the market. According to the data released by ADP on November 30, non-farm private employment rose by 216,000 jobs in November. It’s better than the market’s expectation of 165,000 jobs. It made the dollar stronger. The firmer dollar weighs on dollar-denominated commodities such as gold and silver. In October, the data were revised from 147,000 to 119,000. The market is looking forward to the government non-farm payroll data scheduled to release on December 2. In November, gold fell 7.9%—the biggest monthly loss in three years.
Interest rate views weigh on gold
The higher chance of an interest rate hike in December is weighing on gold prices. The better-than-expected US economic data increased the chances of an interest rate hike in December. As of November 30, the chance of an interest rate hike in December was at 100%. It rose from 95.4% after the release of non-farm payroll data. The Fed’s recently released November minutes also increased the expectation of an interest rate hike in December.
On November 30, precious metal producers Barrick Gold (ABX), Newmont Mining (NEM), Royal Gold (RGLD), and Silver Wheaton (SLW) fell 2.7%, 3.3%, 2.8%, and 2.4%, respectively. The SPDR Gold Trust ETF (GLD) fell 1.3%.
In the next part, we’ll discuss how companies in the energy, metals, and mining sector performed on November 30.