After investors assessed the U.S. economy on August 1, gold futures climbed in New York. However, Forbes reports that they are slightly softer as of early Monday as stock indexes rose following news that the Bank of Portugal announced a plan over the weekend to save Banco Espirito Santo.
The U.S. data released on August 1 showed that the jobless rate increased, even though employers added more than 200,000 jobs for a sixth consecutive month. The dollar declined from its four-month high against 10 major currencies while equities dropped as fears that Argentina's default and conflict at Portugal's Espirito Santo SA would limit credit markets.
Analysts at Commerzbank AG wrote today in a report, "The U.S. Federal Reserve is still exercising restraint as regards any normalization of the interest rate level in the near future. Nonetheless, good economic data over the next few months are likely to put the subject of interest rate hikes back on the Fed's agenda, which should reduce the relative attractiveness of gold," according to Bloomberg.
According to Forbes, gold for December delivery was down $3.80 to $1,291 per ounce on the Comex division of the New York Mercantile Exchange. September silver was fairly steady, slipping 0.1 cent to $20.37 an ounce.
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