© Reuters
Investing.com – At exactly 3:25 pm Riyadh time, gold succeeded in erasing all its losses and turning profitable at the expense of the dollar after the preliminary employment data issued by ADP.
Preliminary employment data from ADP revealed a violent slowdown in the American labor market, as the economy only succeeded in adding 89,000 jobs, while experts expected to add 153,000 jobs, meaning that what was achieved did not exceed 58% of what was expected.
These data reveal the impact of the US Federal Reserve’s monetary policy on the labor market, and that the US Federal Reserve may not need to raise interest rates further if the US labor market slows significantly, because that means a decline in inflation.
Jerome Powell, Chairman of the US Federal Reserve, said that he will watch the data and monitor whether the labor market will begin to slow down, as well as the US economic growth data, and that if the labor market continues to be strong, he will be forced to raise more.
The US market is awaiting private sector employment data by the end of this week.
Spot gold contracts are now recording 1826.66, an increase of 0.20%, adding $3.59. While gold futures contracts rose 0.02% to $1842.15 per ounce. Silver futures rose by 0.29% to $21,430 per ounce after violent declines this week and last week.
On the other hand, the US dollar index fell to 106.377 against a basket of foreign currencies, down by 0.32% now. It is noteworthy that the US dollar index crossed the 107 threshold yesterday for a few moments, but it was unable to resist and fell below 107 again.
Gold this morning
Gold prices returned to their lowest levels in seven months during these moments of trading, today, Wednesday, as they declined for the eighth session in a row with the rise in dollar and bond yields after strong US jobs data kept the markets anticipating further tightening of monetary policy, while it fell to its lowest level. Since late 2018.
Today, the markets are awaiting the release of…
Read also:
Gold and dollar now
It fell 0.5% to $1,832 an ounce.
It fell by 0.3% to $1,817 per ounce.
On the other hand, it rose by 0.2% to 106,919 points.
Gold at settlement yesterday
Gold prices fell at the settlement of trading yesterday, Tuesday, as the yellow metal continued its losses for the seventh session in a row, with the rise of the dollar and US bond yields in light of expectations that the Federal Reserve will continue to tighten monetary policy for a long period.
Upon settlement, gold futures for December delivery fell by 0.3%, or $5.7, to reach $1,841.5 per ounce, the lowest contract settlement since November 30, 2022.
Read also:
Gold…continuous decline
Spot prices on Tuesday touched their lowest since March at $1,813.90, as the US dollar rose on data showing US job openings unexpectedly increased in August.
The number of available American job opportunities rose during the month of August to 9.6 million, contrary to expectations of 8.8 million, just one month after it dropped to its lowest level in more than two years, an indication of the continued flexibility of the economy despite the Federal Reserve’s tightening of monetary policy.
In his speech during an event in Atlanta, Rafael Bostic, President of the Federal Reserve Bank of Atlanta, said that the Fed must keep interest rates at high levels for an extended period to reduce inflation to its target of 2%.
The Investing Fed Rate Tracker showed that the probability of a 25 basis point increase in interest rates at the Federal Reserve meeting in November rose to 27.7%, compared to 16.4% a week ago, with the monetary policy range then ranging between 5.5% and 5.75%.
The ongoing sell-off is keeping gold under pressure, but since most of the moves have been priced in, there should not be any further corrections in bullion prices, said Kunal Shah, head of research at Nirmal Bang Commodities in Mumbai.
He added: “We are at the end of the cycle of raising (federal) interest rates, with the possibility of another 25 basis points, and I think the matter will end at that time. The final stages are very painful, and this is what we are witnessing now for gold.”
The benchmark 10-year US bond yield jumped to a 16-year high, sapping demand for non-interest bearing bullion.
Federal Reserve officials view rising long-term Treasury yields as evidence that their tight fiscal policies are working.
US Treasury Secretary Janet Yellen said on Tuesday that she was very optimistic about the outlook for the economy.
other metals
Other precious metals were also under pressure from a stronger dollar, with the spot falling 0.4% to $21.07 an ounce, after falling to its lowest levels since mid-March in the last session.
Platinum fell 1.1 percent to $862.37, the lowest level in a year. Palladium fell 2% to $1,164.94 and hit its lowest level since November 2018.
2023-10-04 12:31:00
#Urgent #Gold #turns #profitable #moments…why #Investing.com
