Gold tumbles to lowest since mid-April on dollar strength, hawkish Fed

Gold
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  • Gold futures (XAUUSD:CUR) settled -1% to $1,763.60/oz. after declining as much as 1.7% to $1,749.50, the lowest since April 15, hurt by a stronger dollar in the run-up to this week's U.S. jobs report, which is widely expected to come in strong and could support the Federal Reserve's recent hawkish stance.
  • At the height of today's selling, gold was on track for the worst monthly decline since 2013, down more than 8% so far.
  • ETFs: GLD, GDX, GDXJ, NUGT, IAU, JNUG, GGN, PHYS, DUST, SGOL
  • Gold miners trade with broad although mostly mild losses: NEM -0.1%, GOLD -0.7%, KGC -0.7%, AUY -2%, AEM -0.4%, IAG -1.2%, EGO -1.8%, AU -1.1%, NGD -1.4%, SAND -1.8%, MUX -4.7%.
  • "The calls for interest rates to trend higher are going to be much louder from the Fed if we do get a better than expected jobs number," weighing on gold, Bob Haberkorn, senior market strategist at RJO Futures, tells Reuters.
  • "Considering the Fed's recent hawkish tilt, it is difficult to make a strong bullish case for gold," says Han Tan, chief market analyst at Exinity Group.
  • Just a month ago, gold topped $1,900/oz. amid talk that the metal's fundamentals "have never been better."

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