Gold continues this Friday, September 1, in ascent and heads towards its second week in a row of earnings, driven by data which revealed an increase in the US unemployment rate in August.
This increase in the unemployment rate generated speculation that the Federal Reserve (Fed) could postpone any future interest rate hikes this year.
Thus, the spot gold price registered an increase of 0.4%, reaching US$1,947.80 per ounce. This represents a weekly increase 1.8%, after prices hit one-month highs last Wednesday. At the same time, the gold futures American prices increased by 0.5%, standing at US$1,974.70.
Gold: the impact of US unemployment on the price
The US treasury bonds and the dollar saw their losses widen after the publication of unemployment data, what favored gold barssince these do not generate interest.
Although the US economy added more jobs than expected in Augustthe increase in the unemployment rate at 3.8% and slowdown in wage growth suggested a relaxation under labor market conditions.
Tai Wonga New York-based independent metals trader, commented: “Gold is experiencing a modest rally after an employment report that, in general, it was favorable, although not as weak as expected. The bulls are looking forward to gold maintains its recent momentum and close tightly; if it falls below $1,940could raise concerns.”
The bets that the Fed will keep interest rates unchanged in september they increased at 93.0% from 89% prior to the publication of the data. In addition, bets on a November break rose to 65.1%, compared to 55% previouslyaccording to CME Group’s FedWatch tool.
As for other precious metals, the silver cash experienced an increase of 1.3%, reaching US$24.74 per ounce, while el platinum it advances 1.2%, standing at US$978.85. Both metals also posted gains for the week. He palladiummeanwhile, earns 0.9%, reaching US$1,225.
Source: Ambito
I am a 24-year-old writer and journalist who has been working in the news industry for the past two years. I write primarily about market news, so if you’re looking for insights into what’s going on in the stock market or economic indicators, you’ve come to the right place. I also dabble in writing articles on lifestyle trends and pop culture news.
