Investing.com – Global gold prices rose sharply during the trading sessions on Tuesday, as spot prices recorded a new all-time high at $2,770 an ounce.
This came in conjunction with the labor market in the United States showing signs of slowing down with a decrease in the number of jobs available in September on the one hand, in conjunction with an increase in American consumer confidence in the American economy on the other hand.
Important data pushes gold higher
Labor demand, a measure of labor demand, fell to 7.44 million, according to the Labor Department’s monthly job openings and labor turnover survey report. Although experts expected that 7.980 million job opportunities would be created. The previous reading was revised down to 7.861 million opportunities.
The number of layoffs has also increased. The number of Americans who left their jobs fell to less than 3.1 million, the lowest level since August 2020, a sign that more people are losing confidence in their ability to find better work elsewhere.
According to analysts, the slowdown in the labor market bodes well for gold as it will support the new easing cycle implemented by the Federal Reserve. Markets still expect the US central bank to cut interest rates by 25 basis points next week.
On the other hand, consumer sentiment about the US economy rose significantly in October, the Conference Board said on Tuesday.
It rose to 108.7 points, up from a revised reading of 98.7 to 99.2 points in September. Experts had expected a reading of 99.5 points.
The Consumer Confidence Index measures Americans’ assessment of the current economic situation and their expectations for the next six months.
A measure of Americans’ short-term expectations for income, business and the labor market jumped to 89.1. A reading below 80 could indicate a decline in the near future.
It is now rising 1% to $2783 per ounce, at 17:27 Riyadh time.
While it rose about 1.05% to $2771 per ounce, that is the highest price ever recorded by the yellow metal.
Elections support the rise in prices
The increase in gold prices on Tuesday was also supported by uncertainty regarding the US elections. Technically, the current RSI at 69 points indicates that the price of gold is approaching the “overbought” zone, starting at 70 points.
“Gold bulls appear to be taking advantage of the recent pause in U.S. stockpiling and yields, while still enjoying the benefits of Fed rate cut expectations and U.S. election risks.” US,” said Han Tan, chief market analyst at Xenity Group.
“Gold is expected to maintain its gains and could approach $2,800 in the coming days, while US election risks continue to weigh on market sentiment as cuts are expected interest rates with the Fed remain intact. “
Bullion rebounds in a low interest rate environment and is considered a hedge against political and economic uncertainty.
The competition between Republican Donald Trump and Democrat Kamala Harris is still tight ahead of the presidential election on November 5.
2024-10-29 14:33:00
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