Tuesday, March 5, 2024

Gold prices are up 5 dollars and are experiencing weekly losses

Date:

Today, Friday July 7 (2023), gold rose above $5 as the US currency weakened, but it is set to post its fourth straight weekly loss.

Recent US jobs data and hawkish comments from Fed policymakers have increased the challenges of higher interest rates for longer; What is the effect on unclaimed gold?

The private sector added 497,000 jobs in June, up from 267,000 in the previous month, while claims for unemployment benefits in the U.S. rose by about 12,000 to 248,000 last week. .

Gold price now

At 06:31 am GMT (09:31 am Mecca time), gold futures contracts – for August 2023 delivery – were up 0.27%, equivalent to $5.10, at $1920.50 an ounce, the lowest since March 2023. .

Spot gold contracts rose 0.22% to settle at $1915.09 an ounce, according to figures seen by the specialist energy site.

On the other hand, spot silver ore was down 0.10% at $22.70 an ounce, spot platinum was up 0.38% at $909.61 and spot palladium was down 0.20% at $1242.64. An ounce.

At the same time, step back Dollar symbol The American, which tracks the performance of the US currency against 6 major currencies – increased by 0.16%, at 103 points.

And gold prices were down about $12 yesterday, Thursday, July 6, after a rise in US bond yields and the release of economic data.

Customers view gold products at an exhibition in India. Photo courtesy of Reuters

Gold Price Analysis

Despite increased risks of recession from higher interest rates, US private payrolls figures indicate a strong labor market; Investors are now gearing up for non-farm payrolls data in June for additional clues on the Fed’s policy path.

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“The flexible and constrained labor market in the US effectively strengthens the Fed’s case for continuing to raise the benchmark interest rate,” said Tim Waters, senior market analyst at KCM Trading.

“Right now, it’s all about interest rates and a guessing game where gold prices will fall with the final interest rate,” he added. Reuters.

Waters noted that gold prices face an uphill battle trying to stay above $1,900 in the short-term as U.S. yields remain high.

Interest rates

Meanwhile, Dallas Fed Chair Lori Logan said there was a case for a rate hike at the June policy meeting, in comments that underscored her view that more rate hikes are needed.

Market participants closely watched US Treasury Secretary Janet Yellen’s visit to Beijing amid tensions over Chinese restrictions on gallium and germanium exports.

Waters said: “Rising trade tensions between the world’s two largest economies could dampen market sentiment and gold could see some safe-haven buying.”

On the other hand, BofA Global Research cut its 2023 price forecast for gold and other precious metals, and will outperform silver in 2024 when the global economy slows.

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Nadia Barnett
Nadia Barnett
"Award-winning beer geek. Extreme coffeeaholic. Introvert. Avid travel specialist. Hipster-friendly communicator."

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