gold futures price Closed Tuesday (Dec. 6) rebounded $ 1.10, driven by the weakening of the dollar. which will increase the attractiveness of gold By making gold contracts cheaper for holders of other currencies.
gold futures price Closed Tuesday (Dec. 6) rebounded $ 1.10, driven by the weakening of the dollar. which will increase the attractiveness of gold By making gold contracts cheaper for holders of other currencies.
Comex gold futures contract Delivered in Feb. plus $ 1.10 to close at $ 1,782.40 / ounce
Gold price rebounded today. After plummeting nearly $30, it dropped below $1,800 yesterday. It was pressured by a strong dollar and a surge in US Treasury yields. Including expectations that the Federal Reserve (Fed) will continue to raise interest rates. After the US released data indicating a strong labor market and service sector.
The Institute for Supply Management (ISM) said its service sector index rose to 56.5 in November from 54.4 in October and beat expectations of 53.1. Level 50 indicates expansion of the service sector.
The US Department of Labor said that Non-farm payrolls rose by 263,000 in November. That beat analysts’ expectations of 200,000 jobs and average hourly wages for workers rose 5.1 percent year on year. That was above the 4.6% expected. Hourly wages are the primary focus for the Fed in looking for signs of inflation.
Investors expect the Fed to raise interest rates past 5.0% in the middle of next year following the release of a strong jobs report. Although the Fed has raised interest rates by 0.75% for four consecutive times. This indicates that the Fed’s tightening of monetary policy in the past has not been able to dampen the heat in the labor market. This has led to expectations that the Fed will continue to raise interest rates next year to slow the economy and stem a spike in inflation.
CME Group’s FedWatch Tool indicates that investors now expect the Fed to raise interest rates to a range of 5.00-5.25% in May 2023. After previously forecasting a level of 4.75-5.00%