05.01.2024 - Gold price recovers sharply
Gold price (XAU/USD) recovers swiftly despite the labor demand remains stronger-than-projected in December. As per the United States Nonfarm Payrolls (NFP) report, US employers hired 216K workers, which were higher than expectations of 170K and the prior reading of 173K. Market participants anticipated moderate job gains as the pace of frequent job change by individuals has slowed due to easing labor demand. The Unemployment Rate has remained steady at 3.7% while market participants projected a higher figure at 3.8%.
Other employment-related economic indicators such as ADP Employment Change and weekly jobless claims data, released on Thursday had already set a higher base for the official employment data. Meanwhile, Average Hourly Earnings grew at a steady pace of 0.4% while investors projected wages rising at a slower pace of 0.3%. The annual wage data rose sharply by 4.1% against expectations of 3.9% and the prior reading of 4.0%.
The near-term demand for bullions has dwindled as prospects in favour of rate cuts by the Federal Reserve (Fed) from March are expected to drop further. Unlike other members of the Group of Seven economies that are struggling with high interest rates, the labor market in the US economy is performing well . This strength could allow the Fed to leave interest-rate cuts for the second quarter of this year. Gold price recovers strongly after felling like a house of cards after the release of the upbeat US labor market data. The precious metal came out of Thursday’s trading range after breaking below $2,036 but has recovered again. The 20-day Exponential Moving Average (EMA) around $2,040 has acted as a major support for the Gold price bulls.
The near-term demand for bullions has dwindled as prospects in favour of rate cuts by the Federal Reserve (Fed) from March are expected to drop further. Unlike other members of the Group of Seven economies that are struggling with high interest rates, the labor market in the US economy is performing well . This strength could allow the Fed to leave interest-rate cuts for the second quarter of this year. Gold price recovers strongly after felling like a house of cards after the release of the upbeat US labor market data. The precious metal came out of Thursday’s trading range after breaking below $2,036 but has recovered again. The 20-day Exponential Moving Average (EMA) around $2,040 has acted as a major support for the Gold price bulls.