Gold Bounces on Weak Job Growth Amid Fed Rate Hike Debate

7 авг. 2023 г.

Gold prices rebounded on Friday, breaking a three-day streak of losses following the latest report by the Bureau of Labor Statistics, which revealed a mere 187,000 job additions to the U.S. economy in July. This figure serves as another indicator of a gradual cooling in the labor market, a trend that might be embraced by financial markets. The ongoing debate revolves around whether the Federal Reserve will manage to implement interest-rate hikes before the year's end.

Simultaneously, the unemployment rate dropped to 3.5% in July, down from the previous month's 3.6%, as reported by the government on Friday.

Nevertheless, wages, a critical gauge of workforce influence, experienced a 0.4% rise in July, surpassing the Fed's preferences. Over the past year, the increase remained steady at 4.4%.

Candice Tse, Goldman Sachs' Global Head of Strategic Advisory Solutions, remarked, "The employment growth falling short of consensus, coupled with elevated average hourly earnings, underscores the necessity for further strides in reducing the job-worker disparity, slowing wage growth, and ultimately curbing inflation. The Federal Reserve is likely concluding its most aggressive tightening initiative in generations, moving towards a well-managed deceleration."

BUY XAUUSD 1939 - 1941 XAUUSD 🔥🔥

TP1 ✔️ 1945
TP2 ✔️ 1950

SL ❌ 1936