© Reuters.
Investing.com – It fell sharply after the release of the US jobs report on Friday, which showed that the US economy was able to add more jobs than expected. The report showed the addition of 353,000 jobs, while only 155,000 jobs were expected.
These data give the US Federal Reserve an opportunity to keep interest rates high for a longer period. Wages also rose by 0.6%, which threatens the return of inflation again.
Expectations of a reduction next month fell to only 20%. Market expectations for a rate cut next May also declined. Jerome Powell said on Wednesday that the Fed is ready to ease the economy, but is in no rush.
Despite this, the gold market maintained critical support levels and was able to close in the positive zone. Gold ended the week up 1% compared to last week’s close, with futures contracts recording $2,052 per ounce, while it recorded $2,039 per ounce.
Analysts believe that gold is still in a buying mode now, and prices may continue to decline, but buying opportunities still exist.
Adam Patton, currency strategist at ForexLive.com, says that gold may continue to decline in the near term.
Also, gold was unable to rise in January, which is historically the best month of the year for gold to rise.
Patton expects gold to decline in the next few weeks
Saxo Bank believes that gold is still in an upward trend, and the market can consolidate.
According to a statement to Kitco News: “It is likely that he will remain [الذهب والفضة] We are stuck for the short term until we get a better understanding of the timing, pace and depth of future interest rate cuts in the US and EU. Until the first cut is implemented, the market may sometimes get ahead of itself, in the process building expectations of interest rates being cut to levels that make prices vulnerable to a correction. With this in mind, the short-term direction of gold and silver will continue to be governed by incoming economic data and its impact on returns, not least expectations of interest rate cuts.
He continued that the current macro scene does not allow the price of gold to continue rising.
Gold will be sensitive to the growing threat of another banking crisis, you can read about the silent threats in the market here:
While analysts remain cautious on gold in the near term, there is not much bearish sentiment. Any negative banking headlines could send gold prices rising quickly, Stribley said.
“I would look to buy gold if we see increasing evidence of widespread banking losses,” Patton said. “It is a strong threat to the financial markets. This is bad debt and it is only a matter of time before it has to be written down. We do not know how long the banks can withstand these losses.”
Markets await comments from President Jerome Powell on Sunday on 60 Minutes.
On Monday, markets await the PMI data for the services sector.
2024-02-03 08:51:00
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