Created
: 2024.10.08
2024.10.08 22:30
On Friday, the Gold price came under pressure following the publication of surprisingly robust US labour market data. The price fell back to just over $2,630 per troy ounce before recovering somewhat, Commerzbank's commodity analyst Carsten Fritsch notes.
Uncertainty fuels demand for Gold as a safe haven
"The US labour market report showed a much stronger than expected increase in jobs created in September. In addition, the number of new jobs in the previous two months was revised upwards significantly. At the same time, the unemployment rate fell and average hourly earnings rose sharply. As a result, Fed rate cut expectations were scaled back sharply."
"According to Fed fund futures, market participants now expect interest rates to be cut by only 25 basis points in both November and December. This is 25 basis points less than previously expected by the end of the year and corresponds to the Fed's and our economists' expectations. The fact that the Gold price has not corrected more sharply is probably due to the conflict between Israel and Iran. The uncertainty about this is fuelling demand for Gold as a safe haven."
"This can be seen from the ETF inflows of almost nine tons since last Wednesday. Thus, Gold is currently being pulled in different directions by opposing factors. The US inflation data to be released on Thursday is likely to show a further decline in price pressure, but is unlikely to trigger renewed speculation of stronger Fed rate cuts. Therefore, higher Gold prices are likely to be primarily driven by geopolitical risks."
Created
: 2024.10.08
Last updated
: 2024.10.08
FXStreet is a forex information website, delivering market analysis and news articles 24/7.
It features a number of articles contributed by well-known analysts, in addition to the ones by its editorial team.
Founded in 2000 by Francesc Riverola, a Spanish economist, it has grown to become a world-renowned information website.
We hope you find this article useful. Any comments or suggestions will be greatly appreciated.
We are also looking for writers with extensive experience in forex and crypto to join us.
please contact us at [email protected].
Disclaimer:
All information and content provided on this website is provided for informational purposes only and is not intended to solicit any investment. Although all efforts are made in order to ensure that the information is correct, no guarantee is provided for the accuracy of any content on this website. Any decision made shall be the responsibility of the investor and Myforex does not take any responsibility whatsoever regarding the use of any information provided herein.
The content provided on this website belongs to Myforex and, where stated, the relevant licensors. All rights are reserved by Myforex and the relevant licensors, and no content of this website, whether in full or in part, shall be copied or displayed elsewhere without the explicit written permission of the relevant copyright holder. If you wish to use any part of the content provided on this website, please ensure that you contact Myforex.
Myforex uses cookies to improve the convenience and functionality of this website. This website may include cookies not only by us but also by third parties (advertisers, log analysts, etc.) for the purpose of tracking the activities of users. Cookie policy