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Investing.com – (updated at 15:45 ET)
Gold prices rise after the employment data was released by 0.50%, after the data was mixed, but it revealed a rise in the unemployment rate to 3.8%, while experts expected it to settle at 3.5%.
And the price of gold futures contracts (futures) rose to 1976.9 dollars an ounce, up by 0.57%, while the price of spot gold contracts rose to 1950.97 dollars, up by 0.56%.
This rise comes at the expense of the US dollar index falling by 0.30%, to record 103.277 against a basket of foreign currencies.
Employment data revealed that the US economy added 187,000 jobs in August, higher than the expected 170,000 jobs. Also, July data was revised downward to reveal that the economy added 157 thousand jobs instead of 187 thousand jobs. The revision cut 30,000 jobs from last month’s data.
The data supports the reflection of monetary tightening on the US labor market and its push to a narrower range, which may limit the Fed’s enthusiasm to continue the monetary tightening policy and raise interest rates in other meetings during 2023.
Gold in the morning before the data
Gold rose this week, supported by waning chances of a US interest rate hike this year, after a data-heavy week that concludes with a pivotal jobs report later in the day.
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Gold and the dollar now
It fell to the level of 1965 dollars an ounce, by 0.05%.
While it also fell to the level of 1939 dollars an ounce, by 0.07%.
On the other hand, it rose by 0.13% to 103.722 points.
gold when settling yesterday
Gold futures prices fell at the end of the last sessions of August, recording a monthly loss of about 2%, amid conflicting expectations about the US Federal Reserve stopping raising interest rates.
The yellow metal futures prices for December delivery fell at settlement, by 0.35%, or the equivalent of $7.1, to $1965.9, recording a monthly loss of 2.15%.
Bonds and gold fell
“Economic data released this week from the US was weaker than expected, and investors will be waiting to see if the headline employment data confirms a sluggish trend in economic activity,” said Tim Waterer, senior trade market analyst at KCM.
On Friday, the US nonfarm payrolls report is due at 15:30 KSA, which comes after data for the week showed that job vacancies hit a 2-1/2 year low in July and that the economy expanded slightly less than expected. in the second quarter.
Meanwhile, the Institute for Supply Management (ISM) Manufacturing PMI data for August is due to be released, which will provide more clarity about economic activity in the US.
Water added, “If employment data comes out weak this time and less than expected, Treasury yields will continue to fall. The recent drop in yields has made gold more attractive, which is why we saw gold on the road to recovery this week.”
US bond yields are set to end the week down about 3 percent, while the dollar is set to end a six-week streak of gains, as slowing monthly inflation fueled expectations that the US Federal Reserve will keep interest rates unchanged this month.
Expectations for the Fed to keep interest rates unchanged at the September meeting stood at 88.5%, according to the “Investing Fed Interest Tracking Tool,” while expectations for stabilization at the November meeting amounted to 56%.
Gold, as a non-yielding asset, tends to lose its attractiveness among investors when interest rates rise.
Important data released yesterday
US personal consumption expenditures – the Fed’s preferred measure of inflation – rose to 3.3% in July on an annual basis, from 3% in the previous month.
Although the pace of the rally is slower than last summer’s peak of 7%, it is still well above the Fed’s target, which will be watching the data over the next few weeks to consider what to do with rates at the September meeting.
In terms of labor market data, yesterday’s US Labor Department report revealed that initial jobless claims fell by 4 thousand to 228 thousand in the week ending August 26, the lowest level in 4 weeks.
The average number of jobless claims in the past four weeks (which is the most accurate measure of labor market performance) increased by 250 to 237.5k, from the previous week’s average revised up from 236.75k to 237.25k.
According to the layoffs report issued Thursday by “Challenger, Gray and Christmas” company, employers in the United States said that they cut 75.15 thousand jobs during the month of August, an increase of 217% from the number of cuts announced in July, amounting to 23.7 thousand jobs.
other metals
Spot settled at $24.4284 an ounce, while platinum fell 0.2% to $965.98. However, both metals are heading for weekly gains. While it rose 0.7 percent to $1,222.90.
2023-09-01 12:52:00
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