At the beginning of currency trading on Monday, the US dollar’s exchange rate to most world currencies is rising, thanks to the increase in the yields of the US government bonds.
This morning, the common European currency declined by 0.16% to 1.1506 USD. With regard to the Japanese currency, the dollar rises to 113.82 JPY, compared to 113.72 JPY on Friday.
The yield on the US 10-year US government bonds rose to 3.22%, which is highest value since 2011, compared to just 2.88% a month earlier. The upturn in US government bonds is largely due to strong labor market data in the United States.
On Friday, it was reported that unemployment in the United States in September dropped to a minimum level of 3.7%, compared with 3.9% in July. The value of the indicator speaks of almost full employment in the country and is a solid argument in favor of raising the Federal Reserve’s main interest rate. At the same time, the worst-than-expected growth in new jobs is explained by the effect of Hurricane Florence.
On this background, the price of gold is declining on Monday, responding to the US dollar’s growth rate and strong US economy data.
This morning, the gold futures with delivery in December dropped by 5.50 USD on the New York Stock Exchange Comex, or 0.46%, to 1,200.10 USD per ounce.
The price of silver contracts with delivery in December fell by 1.05%, to 14.5 USD per ounce.