An important data affecting the gold price was announced yesterday in the USA. There is a selling pressure on the post-data yellow metal. We look at what this selling pressure will mean.
Important data for gold
The U.S. Bureau of Labor Statistics announced that 339,000 new nonfarm jobs were added last month. Afterwards, gold prices fell sharply. This figure was well above Wall Street estimates for 190,000 new jobs in May. The report also showed that the unemployment rate rose to 3.7% last month from 3.4% in April, a 53-year low. So what does this mean? This creates a strong bullish wave in Treasury yields and the dollar. Therefore, it caused a decrease in the price of gold. However, the strongest component in today’s price drop for both gold and silver was selling pressure. Spot gold fell $29.90 an ounce in today’s trading.
The strength of the employment report and the avoidance of a potential debt ceiling crisis reduced the likelihood of a recession. Accordingly, this situation increased the selling pressure created by market participants. Gold futures fell $31.20, or 1.56%. In this context, he reduced the most active August 2023 Comex contract to 1964.30 dollars. The dollar gained 0.48%, bringing the index to 104. Gold and silver both experienced strong daily declines. However, both metals gained during the week.
Employment report affected prices
The better-than-expected jobs report, released today, lowers the likelihood of the US Federal Reserve cutting interest rates this month. But the probability of stalling is still quite high. CME’s FedWatch tool predicts that the probability of a pause in a rate hike, down from 79.6% yesterday, has dropped to 73.6%. CME’s FedWatch tool had estimated the probability of a pause at 35.8% a week ago. The warning regarding today’s employment report took place in Wall Street’s forecasts. But May typically shows strong numbers for new jobs being added as employers begin to increase seasonal summer employment. The strong employment report also reduced the likelihood of a recession. This has a significant impact on the gold price.
The probability of a break in interest rates remains extremely high at the Federal Reserve’s June 14-15 FOMC meeting. But yesterday’s jobs report raises the possibility of a rate hike, with the Federal Reserve halting rate hikes this month but open to further increases this year. When this is the case, we see that there is a selling pressure for gold prices. As for gram gold, the price continues to be on the rise for gold. cryptocoin.com When we look at it in terms of gold, it should be noted that the 1.500 TL levels are on the agenda for gold.
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