Jakarta, CNBC Indonesia – The movement of gold again influenced by the economic data of the United States (USA). The latest move is the US employment data for September 2022.
The United States Bureau of Labor Statistics announced that there was an increase in the number of workers by 263,000 in September. This number is in fact much less than 315,000 in August. However, the unemployment rate fell to 3.5% in September 2022 from 3.7% in August.
Although the addition of workers is pending, the figure is still quite solid. With data still solid, the market is also expecting that policy falcon The US central bank The Federal Reserve (the Fed) will last a long time.
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“The Fed will take into account the labor and inflation data. With these data, the Fed is likely to raise its benchmark interest rate,” said Mark Hamrick, an analyst at Bankrate, quoted by CNN.
The Fed will meet from 1 to 2 November. With the September employment data, the market is increasingly convinced that the Fed will raise the benchmark interest rate by 75 basis points (bps) at the next meeting.
Analyst of Heraeus Precious Metals Tai Wong recalled that US employment data in September and expectations of the Fed’s key interest rate hike would have further worsened gold.
“Gold’s support point could be US $ 1,690 per troy ounce and it could also drop to US $ 1,660 per troy ounce,” said Tai Wong.
In the last trade this week, Friday (10/7/2022), gold closed 0.95% lower at USD 1,694.52 per troy ounce. Yesterday’s drop extended gold’s negative trend which has weakened since Wednesday this week. Gold prices are now rebounding from the psychological level of US $ 1,700 per troy ounce.
In one week, gold prices are still up 2.1% point to point. However, gold fell 1.3% month-on-month and 3.5% year-on-year.
The weakening of gold due to US data is not the only time this has happened. Throughout the year, gold always sinks when US economic data comes out, ranging from inflation, employment, unemployment, economic growth.
The reason is that the data is used by the Fed as material to consider the rise in the benchmark interest rate. With its status as a super-powerful country, any US policy will truly affect the world, including gold.
Gold has even fallen by US $ 162.19 per troy ounce since the Fed adopted the policy falcon in mid-June by raising interest rates by 75 bps.
