© Reuters.
Investing.com – Updated at 14:20 Saudi time
Gold prices fell significantly during these moments of today’s trading, as this comes in light of the stability of the dollar, and therefore it appears that they are profit-taking operations as the markets await the US inflation data scheduled to be released this week.
Gold futures are now down 1% to $2,028 an ounce.
Meanwhile, spot gold contracts fell by about 1.1% to $2,023 per ounce.
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Gold prices fell during these moments of trading, on Monday, as fading expectations for an early cut in interest rates in the United States kept the dollar and bond yields at high levels, ahead of the release of the main inflation reading later this week.
Meanwhile, trading was weak in Asia, with the Japanese market closed for the Respect for the Elderly Day holiday.
Strong employment data
“I think today’s markets are moving on strong jobs data,” said Kyle Rodda, financial markets analyst at Capital.com. “It’s all tied to fading expectations for a rate cut this year.”
It was relatively flat today, after posting its best week since July 2023 on Friday, making bullion more expensive for holders of other coins, while benchmark 10-year yields remained above 4%.
Official data showed that US employers hired more workers than expected in December, but separate data from the Institute for Supply Management indicated that the services sector slowed significantly last month.
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Official data revealed that the US economy added 216,000 non-agricultural jobs during December, compared to expectations for adding 170,000 jobs, while the unemployment rate remained unchanged at 3.7%, compared to expectations for it to rise to 3.8%.
Market participants expect a roughly 64% chance of a rate cut by the U.S. central bank in March, down from a roughly 90% chance before the new year begins, according to the Fed rate tracker available on Investing.com.
On the technical front, spot gold prices are expected to move in a range between $2,028 and $2,035 per ounce, according to Reuters technical analyst Wang Tao.
Investors are now awaiting the US consumer price inflation report on Thursday for further signals on the pace and size of US interest rate cuts.
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Gold at settlement on Friday
Prices stabilized at settlement on Friday, as markets absorbed data showing the resilience of the labor market in the world’s largest economy despite the Federal Reserve’s tightening of monetary policy.
Upon settlement, gold futures prices for February delivery settled at $2,049.8 per ounce, after falling to $2,030.80 during trading, bringing the yellow metal to an end of a 3-week series of gains after a decline of more than 1% since the beginning of the week.
Gold and dollar now
Gold futures fell 0.54% to $2,038 an ounce.
It fell by 0.64% to $2032 per ounce.
On the other hand, the dollar index stabilized at 102,130 points.
other metals
Spot transactions fell 0.6 percent to $23.01 per ounce, and platinum fell 0.6 percent to $954.77. It lost 0.7 percent to $1,020.25 an ounce, which was the tenth decline of the session.
2024-01-08 08:07:00
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