Skip to main content

Gold Down over Softer-Than-Expected U.S. Jobs Data

Gold Down over Softer-Than-Expected U.S. Jobs Data



By Gina Lee

Investing.com – Gold was down on Monday morning in Asia after lower-than-expected U.S. nonfarm payrolls data released on Friday eased investors’ concerns that the U.S. Federal Reserve would tighten its current dovish monetary policy.Gold futures edged down 0.12% to $1,889.75 by 12:04 PM ET (4:04 AM GMT). The dollar, which usually moves inversely to gold, inched up on Monday while the benchmark 10-year U.S. Treasury yield slipped below 1.6%.

Data released on Friday said that non-farm payrolls in May increased to 559,000, higher than April’s 278,000 reading but below 650,000 figure in forecasts prepared by Investing.com. The lower-than-expected figure eased investors’ concerns about potential runaway inflation and earlier-than-expected interest rate hikes.

Meanwhile, U.S. Treasury Secretary Janet Yellen said on Sunday that U.S. President Joe Biden’s $4 trillion spending plan would be good for the U.S. even if it results in inflation that persists into 2022 and interest rate hikes.

“If we ended up with a slightly higher interest rate environment it would actually be a plus for society’s point of view and the Fed’s point of view,” Yellen told Bloomberg.

Some investors remained cautiously optimistic.

“We are seeing some long covering in Asia today, with risk hedges being unwound after an uneventful news weekend, helped by a slightly stronger dollar and with Bitcoin rallying... although gold has corrected in recent sessions, the bullish fundamentals remain in place. Only a sharp steepening of the U.S. yield curve is likely to change that,” Jeffrey Halley, OANDA senior market analyst, told Reuters.

Investors now await the European Central Bank's policy decision, due to be handed down on Thursday. The Fed is also scheduled to meet from Jun. 15 to 16.

On the demand front, India, the second-largest gold consumer globally, posted the biggest discounts in eight and a half months last week as the number of COVID-19 cases in India topped 28.8 million as of Jun 7, according to Johns Hopkins University data.

In other precious metals, silver dropped 0.7% and palladium fell 0.3%, while platinum edged up 0.2%.

Comments

Popular posts from this blog

Best crypto-currency for investment in 2024

Best crypto coins for investment in 2024 For 2024, several cryptocurrencies are considered promising for investment due to their market performance, technological advancements, and strategic developments. Here are some of the top picks: 1. **Bitcoin (BTC)**:    Bitcoin remains a dominant force in the cryptocurrency market, often seen as "digital gold." Its value proposition as a store of value and the recent approval of spot Bitcoin ETFs by the SEC have bolstered its appeal to investors. 2. **Ethereum (ETH)**:    Ethereum continues to lead in the smart contract space, supporting a vast ecosystem of decentralized applications (dApps) and decentralized finance (DeFi) projects. Its upcoming upgrades, aimed at improving scalability and reducing transaction costs, further enhance its investment potential. 3. **Binance Coin (BNB)**:    As the native token of the Binance exchange, BNB is integral to the Binance ecosystem. It offers utility in trading f...

How to make or income daily 1 to 2 lacks in india By Tradersguruji

  Making 1 to 2 lakhs (100,000 to 200,000 INR) per day in India is a significant financial goal, and there is no one-size-fits-all answer to this question. However, here are a few ideas to consider: 1.Starting a business: Starting a successful business can be a great way to earn a significant income. Consider identifying a market gap or a problem that needs solving and developing a business plan to address it. 2.Investing in the stock market: Investing in the stock market can be a good way to generate high returns, but it also involves a significant amount of risk. Consider investing in a well-diversified portfolio of stocks, bonds, and other financial instruments. 3.Trading: Day trading or swing trading in the stock market can be a way to earn significant profits quickly, but it is also high-risk. Consider gaining a solid understanding of the stock market and learning about technical analysis and risk management before investing. 4.Real Estate: Investing in real estate can be a p...