© Reuters.
Investing.com – Gold prices fell significantly during these trading moments on Monday, after last week’s US jobs data raised doubts about the strength of the labor market, prompting investors to become more skeptical of the Federal Reserve’s rate hike path.
This week, the markets are anticipating the issuance of many important economic data, on top of which is the US inflation data, as these data will have a strong impact on the movements of the currency markets, especially the movements of the US dollar and gold.
Learn ICO Trading Strategy for Free..and Earn Like Warren Buffett!
The Echo trading strategy is one of the latest, strongest and most effective strategies, and it benefits many traders, especially the young ones, and leads them to the path of making money in a simple way.
Saudi Investing offers you a free webinar for an extensive and complete explanation of this strategy with Dr. Muhammad Al-Ghubari on Thursday, July 13th at 8:00 KSA, all you have to do is register.
Register from here
And the dollar now
It fell by 0.25% to $1928 an ounce.
While spot contracts decreased by 0.15%, to 1923 dollars an ounce.
On the other hand, it rose by 0.2% to 102,150 points.
Also read:
Also read:
Gold at settlement on Friday
Gold prices rose on Friday, after the release of the US government jobs report, which showed a slowdown in the pace of employment on the one hand, and higher wages and a slowdown in the unemployment rate on the other hand.
Upon settlement, gold futures contracts for August delivery increased by 0.9%, or the equivalent of $17.1, to reach $1932.5 an ounce, ending a three-week losing streak, and achieving a weekly gain of 0.15%.
Watch for inflation data
The employment report released by the US Labor Department on Friday showed that the US economy added the lowest rate of jobs in two and a half years in June, but strong wage growth indicates that labor market conditions remain tight.
“The latest employment data does not appear to influence expectations for a further rate hike by the Fed at the next meeting,” said Nicholas Vrabel, global head of institutional markets at ABC Refinery. He added, “It will take a strong decline in the upcoming CPI data, which will be released on Wednesday, for expectations of a new rate hike to change.”
Gold is very sensitive to high interest rates because it makes bullion less attractive, which pays no interest. Prices have fallen more than 7% since reaching near-record levels in early May.
Employment data
The employment report issued by the Ministry of Labor in June showed that the economy for the month of June, while experts expected an addition of 225 thousand, and the previous reading was revised to record 306 thousand instead of 339 thousand.
While there were 149 thousand jobs in June, and expectations indicated an addition of 200 thousand, and the previous reading was revised to record 259 thousand instead of 283 thousand.
However, parts of the report may give the Federal Reserve a reason to resume its rate hike cycle later this month. The closely watched wage numbers came in slightly stronger than expected. It increased by 0.4% in June, while expectations were for a rise of 0.3%. As for Ali, it rose by 4.4%, while expectations were for a rise of 4.2%. On the other hand, it recorded 3.6% in June. In line with expectations, while the rate rose from the previous reading by 3.7%.
“The weaker-than-expected jobs data was not supported by some of the other data in the report,” Peter Cheer of the Securities Academy wrote in a note. Adding, “It was a mixed enough report that the Fed could probably go for a 25 basis point rate hike at the next meeting.”
After the data, investors held onto their bets that the Fed will resume its rate hike cycle at this month’s meeting. Traders are pricing in a 92% chance of a quarter-point hike on July 26, roughly the same odds as a day earlier, according to the Fed’s Interest Tracking Tool on Investing Saudi Arabia.
2023-07-10 06:47:00
#Urgent #Gold #loses #luster #important #data.. #doubts #interest #path #Investing.com
