Gold Prices Surge On Weaker Dollar
(RTTNews) - A weaker dollar lifted precious metals on Monday, with gold surging above $5,000 an ounce ahead of key U.S. jobs data due this week, including reports on jobs, inflation and consumer spending.
Investors also reacted to escalating tensions between Tehran and Washington, with U.S. President Donald Trump calling for a regime change in the nation and Iran stating that it is not scared by the military deployment near the region.
Spot gold jumped 1.3 percent to $5,025.14 an ounce while U.S. gold futures were up 1.3 percent at $5,045.71.
The dollar index eased and Treasuries slipped after Chinese regulators reportedly urged banks to scale back holdings of U.S. government debt.
Citing concerns over concentration risk and market volatility, officials advised banks to limit new purchases of U.S. government bonds and asked institutions with large existing positions to gradually reduce their holdings, Bloomberg reported, citing people familiar with the matter.
In economic releases, the delayed U.S. January jobs report, which was postponed due to the partial government shutdown, will now be released on Wednesday.
The closely watched jobs report is expected to show a gain of 55,000 jobs in January, with the unemployment rate seen steady at 4.4 percent.
The December retail sales report is due out Tuesday while the January consumer price index reading — which was also delayed by the shutdown — will be released on Friday.
