GOLD price slipped because investors took profits

3 авг.

XAUUSD decreased during the trading session on Friday (August 2), because investors took profits after this precious metal had a sharp increase in price during the trading session. Analysts believe that gold prices may soon exceed 2,500 USD/oz because the risk of a US economic recession may cause the Federal Reserve (Fed) to cut interest rates more strongly than expected.

However, gold prices have risen 1.8% this week as demand for hedging increases amid heating geopolitical tensions in the Middle East and investor expectations that the Fed will cut interest rates next year. September - a move that will create a more favorable environment for gold prices.

According to the latest statistics, the US job market decelerated stronger than expected and the unemployment rate increased to the highest level since October 2021. The nonfarm payrolls report from the US Department of Labor showed that the number of new jobs in the month was 179,000 jobs, compared to the number of 185,000 new jobs that economists reported in a survey by the firm. Dow Jones news. The unemployment rate increased to 4.3% from 4.1% previously.

The report caused US Treasury bond prices to increase sharply while the USD exchange rate plummeted, creating support for gold prices, helping this precious metal avoid the risk of a deep decline due to profit-taking pressure.

Along with that, the USD dropped sharply, with the Dollar Index falling 1.15%, closing the week at 103.22 points. This is the lowest level of this index since March. All week, the Dollar Index decreased 1.05%.

This week, an important driving force for gold prices was Fed Chairman Jerome Powell's announcement on Wednesday that interest rates could be cut as soon as September if the US economy performed as expected.

With the recently released gloomy employment report, many experts believe that the Fed may have to reduce interest rates by 0.5 percentage points at the September meeting, instead of 0.25 percentage points.

4 авг.

Заметка

Gold prices have fluctuated rapidly in the past week, when they skyrocketed, they also quickly "collapsed" under pressure from investors to take profits. However, both analysts and experts believe that gold prices will continue to increase when supported by many factors

4 авг.

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5 авг.

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The ISM services PMI index increased 2.6 points to 51.4. This index is slightly higher than economists' forecasts. The gain was driven by a recovery in employment, orders and business activity, which showed much of the economy was growing at a modest pace. Reports last week showed a weakening labor market and a decline in the manufacturing sector, raising fears of a recession and suffering global financial markets.

6 авг.

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Gold prices fell more than 1% on Monday (August 5), falling into a sell-off in global markets, due to growing concerns about the state of the economy, although analysts said This will be a temporary adjustment to safe haven assets.

6 авг.

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The DXY index is recovering and could open a favorable week for buyers. Many experienced traders took advantage of Monday's decline to take stock and leisurely enjoy the salmon swimming upstream when the US recession clearly wasn't really in the spotlight.