Gold Prices Edge Higher on US Job Market Concerns and Fed Rate
Updated
Gold prices in early Asian trading on Monday saw a slight increase following the release of last week's U.S. jobs data, which raised concerns about the strength of the labor market. This development led investors to become more skeptical about the Federal Reserve's plans for raising interest rates.
In terms of fundamentals, spot gold was up 0.1% at $1,925.49 per ounce as of 0104 GMT, while U.S. gold futures showed a 0.1% decrease at $1,931.00 per ounce.
The U.S. Labor Department's employment report for June, which garnered significant attention, revealed the lowest job growth in two and a half years. Additionally, job creation in April and May was also lower, suggesting that businesses' willingness to continue expanding their workforce was being hindered by rising borrowing costs.
Higher interest rates tend to diminish the attractiveness of gold, as it does not provide any interest payments.
U.S. Treasury Secretary Janet Yellen concluded her four-day trip to Beijing, stating that her meetings with senior Chinese officials were productive and helped stabilize the often tumultuous relationship between the two superpowers.
As the second-quarter earnings season approaches, investors are focusing on sectors that have experienced significant declines, which may still perform well irrespective of whether the U.S. economy enters a recession this year.
An Invesco survey of central banks and sovereign wealth funds revealed that an increasing number of countries are repatriating their gold reserves as a protective measure against potential sanctions imposed by Western nations, similar to those imposed on Russia.
The world's largest gold-backed exchange-traded fund, SPDR Gold Trust, reported a 0.3% decrease in holdings on Friday.
Data from Friday indicated that COMEX gold speculators increased their net long position by 12,733 contracts to reach 99,205 contracts for the week ending on July 3.
In the realm of other precious metals, spot silver saw a 0.1% gain, reaching $23.09. Platinum rose by 0.4% to $911.40, while palladium climbed 0.2% to $1,246.86.
XAUUSD SELL 1924 - 1926💯💯
✅ TP1: 1920
✅ TP2: 1915
✅ TP3: 1910
🛑 SL: 1930
In terms of fundamentals, spot gold was up 0.1% at $1,925.49 per ounce as of 0104 GMT, while U.S. gold futures showed a 0.1% decrease at $1,931.00 per ounce.
The U.S. Labor Department's employment report for June, which garnered significant attention, revealed the lowest job growth in two and a half years. Additionally, job creation in April and May was also lower, suggesting that businesses' willingness to continue expanding their workforce was being hindered by rising borrowing costs.
Higher interest rates tend to diminish the attractiveness of gold, as it does not provide any interest payments.
U.S. Treasury Secretary Janet Yellen concluded her four-day trip to Beijing, stating that her meetings with senior Chinese officials were productive and helped stabilize the often tumultuous relationship between the two superpowers.
As the second-quarter earnings season approaches, investors are focusing on sectors that have experienced significant declines, which may still perform well irrespective of whether the U.S. economy enters a recession this year.
An Invesco survey of central banks and sovereign wealth funds revealed that an increasing number of countries are repatriating their gold reserves as a protective measure against potential sanctions imposed by Western nations, similar to those imposed on Russia.
The world's largest gold-backed exchange-traded fund, SPDR Gold Trust, reported a 0.3% decrease in holdings on Friday.
Data from Friday indicated that COMEX gold speculators increased their net long position by 12,733 contracts to reach 99,205 contracts for the week ending on July 3.
In the realm of other precious metals, spot silver saw a 0.1% gain, reaching $23.09. Platinum rose by 0.4% to $911.40, while palladium climbed 0.2% to $1,246.86.
XAUUSD SELL 1924 - 1926💯💯 ✅ TP1: 1920
✅ TP2: 1915
✅ TP3: 1910
🛑 SL: 1930
Note
40pips ✅✅✅Note
XAUUSD SideWayNote
Gold awaits fresh cues as focus turns to US inflation print
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.