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Investing.com – Updated at 17:10 local time
Gold prices have now turned higher after turning lower immediately after the release of US employment data, as investors appear to be buying the decline during these moments of today’s trading after prices fell.
Gold futures rose by 0.26% to $1,836 per ounce.
Meanwhile, spot gold contracts rose by 0.14% to $1,823 per ounce.
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The important release that helps determine the Federal Reserve’s decision at the November meeting was eagerly awaited by the market, especially after the preliminary employment data (ADP), which revealed a strong slowdown in job addition.
However, employment data for the private sector, in contrast, revealed that 336,000 jobs were added during the month of September, while experts expected the addition of only 170,000 jobs. Data for August was also revised upward to record 227 thousand new jobs instead of 187 thousand jobs.
Spot and futures gold prices fell strongly after the data revealed great strength in the labor market, which Jerome Powell, Chairman of the US Federal Reserve, said would force him to stop the rise in inflation.
The price of gold (Futures) is now recorded at 15:45 Riyadh time at $1823.9 per ounce, a decrease of 0.42%. While spot gold prices fell by 0.50% to $1812.37 per ounce.
On the other hand, the US dollar index rose 0.46% to 106.547 against a basket of foreign currencies. US Treasury bond yields also returned to the rise.
Gold this morning…before the release of employment data
Gold prices witnessed a noticeable conflict between futures and spot contracts during these moments of trading today, Friday, after it turned to rise again after it had been in a temporary break from the strong rises it witnessed this week.
Markets are awaiting the release of non-farm payrolls data in the United States during Friday’s trading.
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Gold and dollar now
It rose 0.06% to $1,833 an ounce.
While it decreased by 0.05% to $1819 per ounce. But it is on its way to achieving losses for the second week in a row.
On the other hand, the dollar index rose by 0.17% to 106.245 points.
Gold at settlement yesterday
Gold prices turned lower at the settlement of trading yesterday, Thursday, as the yellow metal continued its losses for the ninth session in a row, despite the decline in the dollar index and US bond yields.
Fears of continued monetary tightening were renewed after data indicated a smaller-than-expected increase in the number of applications for unemployment benefits in the United States last week, but it is still near its lowest recorded levels, which reflects the strength of the labor market.
Upon settlement, gold futures for December delivery fell by 0.15%, or $3, to reach $1,831.8 per ounce, the lowest level at the end of the session since November 9, 2022.
Keep an eye out for important data
Ten-year yields fell from a 16-year peak, as did the US dollar from its highest levels since November 2022, but they are on track to record the twelfth consecutive week of gains.
“I see that the market does not have complete conviction to move in this direction until the US jobs data is released,” said Ilya Spivak, head of global macroeconomics at Testilife.
Markets are awaiting the release of non-farm payrolls data in the United States at 15:30 Saudi time, after a series of jobs indicators issued this week. The data could provide clues as to whether interest rates will be raised again.
The SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings hit the lowest levels since August 2019 on Thursday.
other metals
Spot jumped 0.5 percent to $21.01 per ounce, platinum rose 0.3 percent to $857.23, and rose 0.7 percent to $1,149.51, after hitting its lowest levels in 5 years in the last session. All of them are heading for weekly losses.
Prices for platinum group metals may remain low, the CEO of the world’s largest platinum miner, Anglo American Platinum, told Reuters.
2023-10-06 12:48:00
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