XAUUSD Gold rose in price

XAU / USD: Gold rose in price


The disappointing data on US NFP in May, the publication
which took place last Friday, led to a dramatic weakening of the US dollar
the foreign exchange market. The number of jobs outside agriculture rose
38,000 in May (forecast was 164 000). The May job growth
It turned out to be the weakest since September 2010.

Spot price of gold on Friday exceeded the level of $ 1240.00
per ounce. Quotes August gold futures on the COMEX trading
rose 2.5% to 1242.90 dollars per troy ounce, showing the most
a significant increase in daily from 17 March.

Today the attention of market participants will be focused on
speech at 16:30 (GMT) Fed chief Janet Yellen, in which it will affect the theme
monetary policy in the United States in light of the labor market in the US data.
Interestingly, the Federal Reserve Bank of Boston President Eric Rosengren said on Monday that,
despite the slowdown in the number of jobs, it is still waiting for
increases in interest rates in the United States in the next few months.

He noted that although job growth in May
38,000 is "disappointing result", The current level
unemployment rate of 4.7% "corresponds to his concept of total
employment" and a further fall in unemployment inflation can grow.

However, after the release of weak data on NFP probability
raising interest rates in the US in June, virtually disappeared, according to many
market participants.

Higher interest rates are usually under pressure
Gold, which does not bring interest income and become less
attractive than higher-yielding assets with increasing
the cost of borrowing.

Sellers of gold were taken by surprise by weak data
on the US labor market. Now, market participants will assess the future prospects
monetary policy in the United States.

XAUUSD Gold rose in price

Related posts

Next posts

Leave a Reply

Your email address will not be published. Required fields are marked *