Jakarta, CNBC Indonesia – Global gold prices were seen weakening today, Monday (7/10/2024) after labor data for the United States (US) came in very strong on Friday last week (4/10 /2024). Gold prices are also expected to receive many hits this week due to data from the US ranging from inflation to the minutes of the Federal Open Market Committee (FOMC) meeting.
Launching data interpretive, At the close of trading last Friday, the price of gold was down 0.14% to US$2,652.24 per troy ounce. Last week, gold prices weakened for three consecutive days with a decline of 0.4%. During the week, gold prices weakened by 0.22%.
Meanwhile, today at 06:16 WIB, the price of gold decreased again by 0.05% to US$2,650.93 per troy ounce.
Gold prices fell after a stronger-than-expected US jobs report disappointed hopes of an aggressive interest rate cut from the US central bank (The Fed) next month, which pushed the dollar (DXY) stronger.
Quoted from The Daily StarUS job growth accelerated in September and the unemployment rate fell to 4.1%, easing pressure on the Fed to cut interest rates by 50 basis points (bps) at its policy meeting in early November 2024.
“Gold fell as a strong jobs report seemed to lock in a 25 bps rate cut in November,” said Tai Wong, an independent metals trader based in New York.
The CME FedWatch Tool survey shows that 94.9% of market players expect an interest rate cut of 25 bps at next month’s meeting. Meanwhile, the remaining 5.1% still predicted the Fed would not cut interest rates again.
This saw the DXY jump to its highest level in seven weeks after the data, making the precious metal more expensive for overseas buyers.
Will it be volatile this week?
Gold prices are expected to be very volatile this week due to the large number of US economic data releases. On Thursday of this week (10/10/2024), the US will release Consumer Price Index (CPI) data for the period in September 2024.
For reference, the Consumer Price Index (CPI) rose in August 2024 or inflation by 0.2% month-on-month (mtm) and decreased to 2.5% year-on-year (yoy), from 2.9% year-on-year in July time. This marks the smallest annual increase since February 2021 and shows that inflation is on its way towards the US central bank’s (The Fed) target of 2%.
At the same time, core CPI (excluding food and energy) rose slightly more than expected in August, led by sharp increases in the prices of residential services and transport.
In addition, on the same day there will also be first weekly unemployment claims data.
Continuing on Thursday (10/10/2024), the Minutes of the Federal Open Market Committee (FOMC) Meeting or what is commonly known as the FOMC Meeting Minutes, to discuss US monetary policy, so that investors guidance regarding future interest rate results. decisions.
Inflation and the FOMC minutes are some of the most awaited data in the market as they are expected to provide clearer guidance on future Fed policy.
CNBC INDONESIA RESEARCH
2024-10-07 00:15:00
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