The price of gold fell briefly below $1,200 on Thursday afternoon for the first time since February, as US Treasury yields rose ahead of Friday’s highly anticipated jobs report that is expected to solidify the case for an interest-rate raise by the Federal Reserve next week.
The yellow metal’s price touched $1,199.29 a troy ounce before ticking back above the $1,200 line – albeit just barely, to $1,201.07.
Gold’s price has fallen as much as 0.63 per cent on the day, as the precious metal tends to buck against rising US Treasury yields and a strengthening dollar.
It is also seen as a safe haven asset from riskier market pressures, since it offers no yield. That may make it particularly unappetizing to investors with the Fed widely expected to bump up interest rates at its meeting next week.