Investing.com – Updated at 18:36 EST
Gold prices fell by more than 1%, with gold in spot transactions recording $1,981 per ounce, and gold prices in futures contracts recording $1,997 per ounce.
The decline comes in light of increasing expectations that the Federal Reserve will not ease monetary policy in the near future.
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Gold prices fell below the level of $2,000 per ounce during these moments of trading, today, Monday, with the dollar holding steady, as investors looked forward to several major central bank meetings and US inflation data this week for more clarity on the path of gold prices.
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Employment data changes expectations
“Friday’s strong jobs numbers reshaped expectations for the Fed next year, providing support for the dollar and bond yields and putting some downward pressure on gold,” said Tim Waterer, senior market analyst at KCM Trade.
The dollar rose 0.1 percent against its competitors, making gold more expensive for holders of other currencies.
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The data showed that non-farm payrolls in the United States increased by 199,000 jobs last month, exceeding economists’ expectations of 180,000 jobs, while the unemployment rate fell to 3.7% in November from 3.9%, while wages increased by 4.0% on an annual basis. . The report prompted traders to reduce expectations that the Federal Reserve may cut interest rates in March.
The US November consumer price report will be closely watched for further clues on interest rates ahead of the Federal Reserve’s statement and Chairman Jerome Powell’s comments on Wednesday.
The Fed is widely expected to leave interest rates unchanged at 5.25% to 5.50% this week. The European Central Bank, the Bank of England, the Bank of Norway and the Swiss National Bank will also hold their monetary policy meetings on Thursday.
Goldman Sachs (NYSE:) expects the Fed to cut interest rates for the first time in the third quarter of next year, earlier than its previous forecast for the fourth quarter, citing better inflation news.
While the credit rating agency Fitch expects the Federal Reserve to raise interest rates in January 2024, in light of stronger-than-expected growth, the central bank will stabilize its monetary policy until July, then reduce borrowing costs by 100 basis points until the end of the year.
Low interest rates tend to support non-interest bearing bullion.
Meanwhile, COMEX gold speculators reduced their net long positions by 11,895 contracts to 132,515 contracts in the week ending December 5.
While spot gold may test support at $1,992 per ounce, a breakout below could open the way toward the $1,962 to $1,977 range, according to Reuters technical analyst Wang Tao.
Gold at settlement on Friday
Gold futures prices turned lower when settling trading, on Friday, after data showed an acceleration in non-farm job growth in the United States during the month of November in conjunction with a decline in the unemployment rate.
Upon settlement, gold futures prices for February delivery fell by 1.55%, or $31.9, at $2,014.5 per ounce, ending their three-week series of gains, after recording losses of 3.6% during this week’s trading.
Gold and dollar now
It fell by 0.31% to $2008 per ounce.
It fell by 0.53% to $1,994 per ounce.
On the other hand, it rose by 0.17% to 103.80 points.
other metals
Spot transactions fell 0.1 percent to $22.94 per ounce, while platinum settled at $914.27 and fell 0.9 percent to $938.68 per ounce.
2023-12-11 15:38:00
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