© Reuters Why has the price of gold soared close to $ 1,675 an ounce?
Arabictrader.com – Prices have gone up Strong profit of around $ 30 was achieved during trading today, Friday, to coincide with rising demand for the yellow metal, in light of strengthening fears about the slowing pace of US monetary tightening, especially following the release of the data. on the US labor market, which showed an increase in unemployment in the US despite the continued increase in jobs in the economy.
In today’s trading, spot gold contracts have risen by approximately 2.50% and have recorded approximately $ 1,670.38 per ounce. Meanwhile, gold futures contracts posted around $ 1,673.90 an ounce, an increase of 2.64%.
It declined, which measures the performance of the US currency during today’s trading nearly and stabilized below the 112.00 point level, and scored around 111.32 points, down around 1.61. %, and this has had a strong positive impact on gold prices.
It rose sharply in light of rising demand for the yellow metal due to the apparent weakness of the US dollar amid fears of a slowdown in the pace of tightening of US monetary policy after US labor market data was released a few hours ago, as the change in agricultural employment increased by 261k jobs, better than expected Markets indicating that the index was up about 197k jobs, and the previous reading had increased of about 263,000 jobs, and has been revised upwards for 315,000 jobs.
The US unemployment rate, on the other hand, rose to 3.7% at the end of October, higher than market expectations, which indicated an increase in unemployment to 3.6% over the same period. The previous reading of the index had seen around 3.5% unemployment at the end of September, which raised fears that the Federal Reserve may continue to raise interest rates at a very strong pace in the next period.
Additionally, gold prices benefited from today’s statements by US Fed member Collins that it is time for the US Federal Reserve to shift its focus from the magnitude of the interest rate hike to the final level of interest and that the US Federal Reserve is aware of the risks of excessive monetary policy tightening and, with that, there is still room for a rate hike of around 75 basis points.
But what is supporting the dollar and preventing a record rise in gold prices is the rise in the yield on US bonds, as the yield on US 10-year bonds increased by 0.83% and registered about 4.158%. In addition, the yield on the US 20-year bond increased by 1.50% to approximately 4.4873%.
Among the prices of other metals, in addition to gold, metal contracts increased by 6.31% and recorded approximately $ 20,657 an ounce, while metal contracts increased by 2.78% and registered approximately 1848.00. dollars an ounce. Likewise, contracts on the platinum metal were up 3.11% and recorded around $ 952.80 an ounce.
