The gold price is steady today in the Asian trading session after Friday’s losses on the back of better than expected data from the US that all but seals the deal for rate hike from the US Federal Reserve this month.
The unemployment rate in the US dropped to an 18-year low of 3.8 percent while the Nonfarm payrolls figured surged by 223,000 jobs which saw gold sharply sold off, but buyers were quickly back into the market which stemmed the precious metal from further losses.
“Great job numbers, lower unemployment rate, increased labor participation rate and ISM [were] all putting more pressure on gold,” but the decline tapered off by late morning Friday, said Jeff Wright, executive vice president at GoldMining Inc.
Until this month’s rate hike, gold may fail to make any significant gains, but once this is out of the way the recent pressure put on the precious metal by US monetary policy may fade and help boost the price again.
Once the rate hike is out of the way, the market will be focusing on the next and potentially last move before the Fed stops for a while. We also think that the rate picture may have run its course as well, at least for now,” said INTL FCStone analyst Edward Meir
“As time moves on, there’ll be less and less reasons to get into the U.S. dollar, which is a very powerful fuel for the gold complex. “ he added.
Another factor that may support the gold price is its familiar appeal as a safe haven as the political turmoil taking place in Italy comes to a head, with some saying the market may be underestimating the size and complexity of the problem.
"There is an anti-establishment vote taking place. Taxpayers [in Italy] are fed up with socialist government bureaucrats and there's a pushback against them, just like the British did against the unelected E.U. ministers dictating what polices are for the Brits," said Frank Holmes, CEO of U.S. Global Investors.
"There is a rebellion taking place, and that is good for gold," he added.
Activity of FIBO Group, Ltd. Company is regulated by the Financial Services Commission (FSC), registration number of the licence: SIBA/L/14/1063.
Trading on Forex market implies serious risk including the risk of loss of all the funds invested. Please, take into account that trading on the forex market isn’t suitable for all investors and traders.
Unfortunately the services of the company aren’t provided to residents of Austria, Great Britain, Iraq, North Korea and the USA.
Recommended Content
Editors’ Picks
EUR/USD struggles to recover above 1.1000 ahead of Fedspeak
EUR/USD holds ground on upbeat German Industrial Production data on Tuesday but finds it difficult to clear the 1.1000 hurdle. In the absence of high-tier macroeconomic data releases from the US, investors will pay close attention to comments from central bankers.
GBP/USD holds steady near 1.3100 as mood sours
GBP/USD trades in a tight channel at around 1.3100 following Monday's decline. The negative shift seen in risk mood doesn't allow the pair to gather recovery momentum as investors await comments from Federal Reserve policymakers.
Gold recovers from weekly lows, trades near $2,650
After falling to a fresh weekly low below $2,630 earlier in the day, Gold gains traction and recovers to the $2,650 area. The precious metal benefits from the negative shift seen in risk mood as geopolitical tensions remain high.
Ripple price shows signs of weakness
Ripple price stabilizes around $0.530 and trades within a tight range for the fourth day in a row on Tuesday. After breaking below its ascending trendline last week, XRP’s price was rejected from its daily resistance level on Monday.
RBA widely expected to keep key interest rate unchanged amid persisting price pressures
The Reserve Bank of Australia is likely to continue bucking the trend adopted by major central banks of the dovish policy pivot, opting to maintain the policy for the seventh consecutive meeting on Tuesday.
Five best Forex brokers in 2024
VERIFIED Choosing the best Forex broker in 2024 requires careful consideration of certain essential factors. With the wide array of options available, it is crucial to find a broker that aligns with your trading style, experience level, and financial goals.