How Gold Prices Affected by the Unemployment Report By Investing.com

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© Reuters.

Written by Gina Lee

Investing.com – down in Thursday morning Asian trade; Investors are awaiting US economic data to further gauge inflationary pressures. The decline was helped by a rise that reduced the attractiveness of the yellow metal.

It fell 0.45% to $1,775.35 by 4:11 AM GMT, but recovered and rose again to $1,783.66 by 11:17 GMT. While the dollar, which usually moves in reverse with gold, rose on Thursday to its highest level in nearly 11 weeks.

Investors also absorbed the latest comments from US Federal Reserve officials. Dallas Federal Reserve Chairman Robert Kaplan said the economy is likely to meet the Fed’s tapering threshold earlier than expected, having previously predicted a rate hike in 2022. The Fed may slow down the action for the next few months.

The Federal Reserve recently sought to calm investor fears after it issued an unexpectedly tight monetary policy decision last week. Officials, including Federal Reserve Chairman Jerome Powell, emphasized that the central bank would maintain loose monetary policy, but added that a gradual withdrawal of emergency support could occur in the coming months.

Although gold is widely viewed as a hedge against inflation, a Fed rate hike will increase the opportunity cost of holding it. On the data front, it was better than expected 62.6 in June, while it was lower than expected at 64.8.

More US data, including and for this week, will be released later in the day. The Fed will also release the results of its latest banking stress tests later in the day.

And across the Atlantic, he’ll rise later in the day. Regional data also mentioned that the Manufacturing and Services PMIs for June were better than expected, coming in at 63.1 and 58, respectively. June also had a better-than-expected 64.9 ahead of the country’s Ifo Business Climate Index later in the day.

In the UK, the index was better than expected at 64.2, while it was lower than expected at 61.7. In terms of other precious metals, it settled at $25.87 an ounce, slightly down 0.1%, and platinum rose 0.5%.

Update- How was gold affected by the US unemployment report?

The US weekly jobless claims data was released minutes ago in the USA, which was disappointing; Where it exceeded expectations, which estimated unemployment at 380 thousand, while the report said that the number reached 411 thousand. Gold was not affected much in the current moments by what was mentioned in the unemployment report, as it is still at the level of 1783 dollars, rising five points by 0.26% to the top.

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