Union files complaint against Orla Mining, alleging violation of worker rights in Mexico
The complaint is only the second of its kind made from Canada using CUSMA’s RRM process since the trade deal came into force in 2020.
Gold prices retreated on Monday as the dollar advanced on Friday’s strong US jobs numbers, while traders also positioned for inflation readings this week which could influence the Fed’s interest rate decision.
Spot gold fell 1% to $1,988.25 per ounce by 1:00 p.m. EDT, back below the key $2,000 level, while US gold futures were down 1.1% to $2,004.50 per ounce in New York.
[Click here for an interactive chart of gold prices]
Meanwhile, US Treasury yields rose following last week’s jobs report that showed a still strong pace of hiring in March, likely giving room for the Federal Reserve to hike rates again.
“Lower yields previously gave metals a reprieve to move higher, but with further rises in energy prices led by oil possible, rate hikes are still on the table and that can push gold back even further,” Daniel Pavilonis, senior market strategist at RJO Futures, told Reuters.
Chances of a 25-basis point rate hike next month were now pegged at 70%, driving an uptick in the dollar, making dollar-denominated bullion less attractive for holders of other currencies.
Another rate hike could “really box the market in,” with gold likely consolidating in a range, Pavilonis added.
Gold surpassed $2,000 last week as weak US services sector and job openings data made a rate hike next month less likely.
The CPI print is due at 8:30 a.m. ET on Wednesday, and will be followed later in the day by the minutes from the Fed’s last meeting.
Signs that US disinflation is gathering pace, allowing the Fed to pause rate hikes sooner rather than later, may restore gold to recent highs, said Han Tan, chief market analyst at Exinity.
(With files from Reuters)
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