Kitco News – With a solid month of October in the rearview mirror for gold, the metal is struggling, hitting another 4-week low on Tuesday. Gold is now within striking distance of psychological support at $1,100.00 with December Comex gold last down $20.80 at $1,115.10 an ounce. Commenting on gold’s price action from the beginning of October to date, one research director said expectations of a U.S. interest rate increase continues to be the main contributing factor for the metal’s weakness. ‘Gold increased 2.4% in October but gains were limited by renewed expectations of Fed tightening and the best month for the S&P 500 since Oct. 2011,’ said Mike McGlone, research director for ETF Securities. ‘Gold has continued to come under pressure in November as the NASDAQ has extended to new historic highs,’ he said. According to McGlone, the gold market appears to remain stuck in a range between $1,100 and $1,200 an ounce. He also explained the importance of Friday’s nonfarm payrolls number, ‘[The] unemployment number may set the tone for the remainder of the year,’ he said. ‘If it confirms the weak September number, Fed tightening expectations should be delayed and the price of gold should benefit. If the number is strong, the market appears to be setting up for an initial tightening at the December meeting,’ he said. According to reports, consensus forecasts call for 180,000 jobs to have been created in October and for a 5.1% print on the unemployment rate.
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