Gold near three-week low

December 08,2015

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Gold held near a three-week high on Monday, boosted by short-covering after strong US.
nonfarm payrolls data bolstered the case for a Federal Reserve rate hike next week.
With speculators holding record short positions in COMEX gold and the dollar failing to gain much traction post payrolls data, some believe gold prices could see more upside.
US nonfarm payrolls rose 211,000 last month, above market expectations and removing most doubts about the first Fed rate hike in nearly a decade at the central bank´s next policy meeting on Dec. 15-16.
Spot gold slipped 0.2 percent to $1,084.80 an ounce by 0619 GMT, but held near the $1,088.70 level hit in the previous session, the highest since Nov. 16. Gold gained 2.3 percent on Friday after slumping to a near-six-year low earlier in the week. Typically robust data would have sent gold lower as it would support a rate hike, but investors on Friday chose to cover their shorts.


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