Gold Calms After Hitting 1-Week High
Gold prices stabilized after experiencing their largest gain in about a week, as traders evaluated the implications of US interest rates based on recent private-sector employment data
Quick overview
- Gold prices stabilized above $3,980 per ounce after a 1.2% increase, as traders assessed US interest rate implications from employment data.
- ADP Research reported a payroll increase of 42,000, easing concerns about a rapid economic downturn.
- Gold has risen over 50% this year, supported by ETF inflows and central bank purchases, despite recent price fluctuations.
- The Federal Open Market Committee will meet next month, but a prolonged government shutdown is delaying key economic data.
Gold prices stabilized after experiencing their largest gain in about a week, as traders evaluated the implications of US interest rates based on recent private-sector employment data. Bullion remained just above $3,980 per ounce, following a 1.2 percent increase on Wednesday. Gold was stable at $3,981.40 per ounce at the time of publication.
According to data from ADP Research, payrolls rose by 42,000 after experiencing declines for two consecutive months. This modest increase eases concerns about a rapid downturn and aligns with a general softening in labor demand.
This year, the bullion asset has increased by more than 50%. It reached a record in October, but after a fierce rally, it lost some ground. In addition to inflows into bullion-backed exchange-traded funds and increased central bank purchases, the US central bank’s rate cuts have supported prices. According to Vantage Markets analyst Hebe Chen, “the metal is likely to remain range-bound in the near term.”. “Stable, but awaiting the next big spark.”.
The Federal Open Market Committee, which sets interest rates, is scheduled to meet for the last time in 2025 next month. Currently, the longest government shutdown in US history has caused important official data to be delayed, making it much more difficult to evaluate conditions throughout the world’s largest economy.
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