Gold Prices Are Rising on Global Markets: What’s Behind the Trend
3 July 19:15
Gold is rising on Friday, July 3, and is likely to end the week in positive territory after four consecutive weeks of declines, as weak U.S. labor market data has dampened expectations of a rapid interest rate hike by the Fed. This is reported by "Komersant Ukrainian", citing Reuters.
The spot price of gold rose 1.2% to $4,172.44 per troy ounce, hitting its highest level since June 23 during the session. The precious metal remains above its 21-day moving average and is up 2.4% since the start of the week. The rise in gold prices was driven by a sharp slowdown in U.S. hiring in June, and the initial price reaction appears justified amid weakening market expectations of a Fed rate hike in September, said Bybit analyst Han Tan.
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Data released on Thursday showed that nonfarm payrolls in the U.S. economy rose by 57,000 in June, compared with a forecast of 110,000. Traders are now pricing in a roughly 54% probability of a rate hike in September, down from 66% prior to the data release, according to the CME’s FedWatch tool.
Data from the World Gold Council showed on Thursday that central banks increased their gold reserves by 41 metric metric metric metric metric metric metric metric metric metric metric metric metric metric metric metric metric metric metric metric metric metric metric metric metric metric metric metric metric metric metric metric metric metric metric metric metric metric metric metric metric metric metric metric metric metric metric metric metric metric metric metric metric metric metric metric metric metric metric metric metric metric metric metric metric metric metric metric metric metric metric metric metric metric metric metric metric metric metric metric metric metric metric metric metric metric metric metric metric metric metric metric metric metric metric metric metric metric metric metric metric metric metric metric metric metric metric metric metric metric metric metric metric metric metric metric metric metric metric metric metric metric metric metric metric metric metric metric metric metric metric metric metric metric metric metric metric metric metric metric metric metric metric metric metric metric metric metric metric metric metric metric metric metric metric metric metric metric metric metric metric metric metric metric metric metric Central banks are expected to remain one of the key drivers of demand for spot market prices in the long term, despite the fact that some of them have recently sold their reserves to support their national currencies, Tan noted. Meanwhile, demand for the precious metal in India weakened this week due to price rebounds, while buying interest in China rose slightly.
Palladium rose 0.55% to $1,274.81 per ounce, while silver gained 2.63% to $62.61 per ounce.
Meanwhile, the price of platinum rose 2.45% to $1,655.77.
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