WASHINGTON (dpa-AFX) - Gold prices edged lower on Monday as the U.S. dollar moved up against major currencies after the British Prime Minister Theresa May postponed Parliament's vote on Brexit deal with the European Union.
The dollar was struggling earlier in the day, weighed down by Friday's sell-off in equity markets amid trade and growth concerns, and on speculation the Federal Reserve will pause monetary tightening sometime soon after the latest data on U.S. jobs missed estimates.
But the greenback moved higher as the pound plunged sharply after the U.K. Prime Minister Theresa May cancelled a vote on the Brexit draft proposal, aiming to work for a better deal with Brussels. However, according to reports, the European Union executives are unlikely to change the terms of its agreement for U.K.'s exit from the bloc.
Rising concerns about U.S.-China trade tensions too aided the greenback's uptick.
The dollar index rose to 97.12, gaining about 0.66%, after having declined to a low of 95.78 earlier in the day.
Gold futures for February ended down $3.20, or 0.3%, at $1,249.40 an ounce.
On Friday, gold futures for February ended up $9.00, or 0.7%, at $1,252.60 an ounce, the highest settlement in nearly five months.
Silver futures for March settled at $14.605 an ounce, down $0.091 from Friday's close.
Copper futures for March ended at $2.720 per pound, down by about $0.030 from previous close.
The Fed is likely to raise interest rates as expected at its December 18-19 meeting, but traders are no longer certain that it will raise rates even once more next year.
The data from the Labor Department on Friday showed non-farm payroll employment rose by 155,000 jobs in November, after surging up by a downwardly revised 237,000 jobs in October. Economists had expected employment to climb by about 200,000 jobs compared to the jump of 250,000 jobs originally reported for the previous month.
Meanwhile, the report said the unemployment rate in November remained unchanged for the second straight month at 3.7%, holding at its lowest level since hitting 3.5% in December of 1969.
Copyright RTT News/dpa-AFX