For a long time, traders considered American Non-farm Payrolls (NFP) the most important release in the market. However, the situation has changed. Now US CPI moves financial markets.
Gold keeps to 6-month maximums as greenback, equities struggle
On Monday, gold futures tried new six-month maximums because bullion marked early profits, backed by a weaker greenback.
Eventually, metals were suppressed by dismal, although muted, stock trade ahead of the Christmas holiday. In general, risk assets were quite calm due to the White House tension over the key US bank, with reports drawing enhanced attention to American leader’s ire over surging interest rates and the fact that he’s unable to remove Fed Chair Jerome Powell just over policy disagreement.
In addition to this, Treasury Secretary Steven Mnuchin came up with a statement having to do with credit market stability after several calls to key financial institutions. Financial experts pointed to a muted reaction in stock markets, although they stressed that the statement risked affecting confidence over liquidity when there had been minor immediate concern. Some experts are assured that the year-end objective of $1,275 can be reached, as the everlasting situation in American generally favors it. They added that any weakness in the stock markets can potentially drive the current surge.
In the face of it, February delivery gold futures GCG9 managed to ascend by 0.6% on the Comex exchange being worth $1,265.10 an ounce. The previous week the contract reported a weekly soar of nearly 1.4%, backed mostly by its settlement at $1,267.90 on Thursday, which appears to be the highest outcome since June 25.
On Globex, gold futures trading closed early at 12:30 ET. On Tuesday, financial markets will be unavailable for the Christmas holiday.
Besides this, the USD index went down by almost 0.2%.
In spite of the fact, gold prices, based on the most-active contracts, have ascended for recent months, adding 5% higher quarter to date, for the year so far they’ve tumbled by about 4%.
United States Bureau of Labor Statistics will release monthly average hourly earnings, non-farm employment change (NFP), and unemployment rate on November 5, 14:30 GMT+2.
United States Bureau of Labor Statistics will release monthly average hourly earnings, non-farm employment change (NFP), and unemployment rate on October 8, 15:30 GMT+3.
About 24% of global central banks intend to increase gold reserves in 2023. Rising inflation, geopolitical turmoil, and worries about interest rates are reasons to increase gold reserves.
Greetings to a brand new week full of events, economic releases and US debt frictions. We are here to tell you everything you need to know!
The US dollar index breaks one resistance after another. Read the report to learn the next target for the US dollar index!