ShreeMetalPrices: Gold Prices holds $2,000 as US Show Signs Of Slowness


Gold dipped on Monday after solid US job data revived expectations for another interest rate increase and boosted dollar. But lingering economic uncertainties maintained safe-haven metal at 2000 dollar per ounce.Gold Prices

By 1040 GMT, spot gold had decreased by 0.3 percent to 2000 dollar an ounce. While United States gold futures delivery had decreased by 0.5 percent to 2,015.50 dollar.

According to United States Labor Department statistics released on Friday, nonfarm payrolls rose by 236K jobs in past month.

According to Han Tan, chief market analyst at Exinity, markets now expect United States Federal Reserve to increase interest rates next month. Gold’s recent slide may possibly be a technical reversal from conditions that were almost overbought.

Nevertheless, Tan noted, there are indications that United States disinflation is accelerating. Which might allow the Federal Reserve to suspend raising rates sooner rather than later.

Higher interest rates raise opportunity cost of owning gold, which is usually thought of as an inflation hedge.

Gold broke beyond 2K dollar mark previous week as some unfavourable United States statistics heightened the likelihood of a slowdown in the wake of a rise in oil prices.

A “stickier” core United States consumer price index would, however, consolidate a 25 bps increase and guarantee that, absent a new catalyst, price of gold might not reach record peaks this month.
On Wed, at 12:30 GMT, United States Consumer price index print is due.

Exinity’s Tan noted that increased investment into exchange-traded funds with a gold component, money managers increasing their net long positions to their top level in more than a year, and central banks increasing their gold holdings lately are all still supportive factors for gold prices.

Due to the Easter weekend, markets in Australia, Hong Kong, and Europe were close on Monday.