Gold posted its biggest daily rise in almost 2 weeks after data from the US economy

Gold posted its biggest daily rise in almost 2 weeks after data from the US economy

Gold marked his biggest rise in almost two weeks this thursday june 8 due to a drop in the dollar and in bond yieldsafter learning that the weekly requests for unemployment benefits in the United States were up last week, which reinforces expectations that the Federal Reserve interrupt your cycle of interest rate hikes.

He spot gold climbed 1.2% to $1,962.49 per ounce. US futures gained 1% to $1,978.60.

The number of Americans filing new claims for unemployment benefits increased last week, suggesting the job market is slowing amid rising recession risks.

“These data show further weakness in the US economywhich is good news for gold, as it will allow the Federal Reserve stand by,” said Edward Moya, OANDA Market Analyst.

“If inflation remains weak, if the Fed keeps waiting and gives no sign of raising rates at the next meeting, gold could rise“, he added.

After the publication of employment datathe dollar fell 0.7%to nearly a week lows against its rivals, making gold cheaper for buyers of other currencies, while benchmark 10-year US Treasury yields fell.

Agents in the money market now see a 71% chance the Fed will not raise rates at its monetary policy meeting next week, according to the CME’s Fedwatch tool.

The fall in the cost of credit in the United States puts pressure on the dollar and the yield of the bondswhich increases the attractiveness of bullion, which does not offer interest.

He US consumer inflation report May, which is will publish on June 13could shed more light on the health of the world’s largest economy.

Among others precious metals, the silver rose 3.4% to $24.24 an ounce; the platinum fell 0.7% to $1,010.93; and the palladium it was down 2.7% at $1,351.90.

Source: Ambito

Leave a Reply

Your email address will not be published. Required fields are marked *

Latest Posts