“The market views the stronger-than-expected payroll report as a new push for the Federal Reserve to raise the rate by another 75 basis points at the meeting in early November,” said Tai Wonga senior trader at Heraeus Precious Metals in New York in dialogue with Reuters.
“If bullion fails to hold the $1,690 support, it could retest the $1,660 level. The market will now focus on next week’s key inflation data as well as the Fed minutes.”
Friday’s report showed that American employers hired more workers than expected in September and that the unemployment rate fell to 3.5%. This provides a signal that economic activity is recovering in the United States and that the Federal Reserve’s monetary policy is not having the expected contractionary effect, so it can sustain its policy of controlling inflation through interest rates. high interest.
Gold is highly sensitive to US interest rate hikesas these increase the opportunity cost of holding non-yielding bullion, while boosting the dollar.
After the data the dollar strengthened against its rivals, making gold more expensive for buyers with other currencies. Benchmark US Treasury yields also rose.
The silver fell 1.8% to $20.27 per ounce, but it suffered its biggest weekly rise since the end of July, 6.7%.
The platinum fell 0.4% to $918.83 an ouncebut it still marked its best week since June 2021. The palladium lost 0.9% to $2,241.54.
Source: Ambito
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