Gold holds drop after US Jobs data support rate-hike outlook
Now Reading
Gold holds drop after US jobs data support rate-hike outlook

Gold holds drop after US jobs data support rate-hike outlook

Bullion dropped 0.9 per cent as US non-farm payrolls jumped by more than double what economists had forecast

Avatar

Gold held its biggest decline in two weeks after strong US jobs growth tempered recession fears, suggesting the Federal Reserve is likely to persist with steep interest-rate hikes to curb inflation.

Bullion dropped 0.9 per cent on August 5 as US non-farm payrolls jumped by more than double what economists had forecast. That spurred gains in the dollar and Treasury yields, reducing the appeal of non-interest-bearing gold.

The data support the case for the Fed to raise its benchmark rate by 75 basis points next month, matching the moves it made in June and July.

It also means the central bank may need to keep borrowing costs higher for longer, contrary to market expectations for rate cuts in 2023. US inflation figures later this week will provide more clues on the likely path.

The precious metal has still rallied for the last three weeks, drawing haven support from fears of a global recession and heightened US-China tensions.

Spot gold declined 0.1 per cent to $1,774.13 an ounce as of 9:30 am in Singapore. The Bloomberg Dollar Spot Index added 0.1 per cent after rising 0.6 per cent on August 5. Silver and platinum fell, while palladium edged higher.

You might also like


© 2021 MOTIVATE MEDIA GROUP. ALL RIGHTS RESERVED.

Scroll To Top