Jakarta, CNBC Indonesia – Global gold prices rose sharply this week after going through a week full of volatility. This increase was the first after two consecutive weeks of decline.
On the last trading day, Friday (10/5/2024), the spot gold price rose 0.61% to US $2,360.14 per troy ounce. Meanwhile, the week’s performance rose 2.55%.
An increase in gold purchases largely boosted gold prices, but last week’s jobs data and Thursday’s jobless claims data provided support, said Phillip Streible, chief market strategist at Blue Line Futures.
“Concerns about the employment situation are often the first pull in the economy and could trigger the Fed’s first rate cut,” Streible said.
The Labor Department released initial claims for US unemployment benefits which rose by 22,000 to 231,000 for the week to May 4, 2024. This number was higher than the number of jobless claims in the previous week, which was at 215,000.
This increase in the number of unemployment claims also monitors a reduction in interest rates by the central bank of the United States, The Federal Reserve, or The Fed, at least once this year.
Financial markets expect the US central bank to start tapering interest rate in September.
Lower interest rates generally tend to increase the attractiveness of gold bullion because it is interest free.
Investors are now looking ahead to next week’s US producer price index and consumer price index data, both of which could have a big impact on gold and money
“If we get hot inflation data or even warm inflation data next week, that will kill any idea that the Fed could cut rates as early as September,” said Jim Wyckoff, senior market analyst at Kitco.
Meanwhile, near-record domestic gold prices curbed demand for physical gold in India, the world’s second-largest consumer, during major festivals.
CNBC INDONESIA RESEARCH
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2024-05-11 01:20:34
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