The positive employment report was great news for the dollar, U.S. stocks and American workers, but it was a nightmare for gold investors.
Barron's reported that gold slid to $1,198.40 following the release of U.S. employment data, its lowest point in 2014, and was still hovering just below the $1,200 mark at recent check. Gold for the actively traded December delivery was down to $1,201.30.
Forbes reported that analysts are lowering their expectations for gold over the next few years. While gold opened at $1,207.80 per ounce in 2014 and approached a high of about $1,400 in March, many gold watchers expect that the precious metal will trade between $1,150 to $1,350 for the next few years.
"We are lowering our near-term gold and silver price forecasts, due to a combination of US dollar strength, relatively soft physical demand and strength in the broader equity markets," RBC analyst Stephen Walker wrote in a research note Friday morning.
The expectation that the Fed will increase interest rates in the next few years on the part of some analysts could also lead to a stronger dollar and thus, weaker gold prices.
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