World Gold Price Slips After Four Days Of Rise

Price of gold (photo: Doc. Antara)

JAKARTA - Gold prices skidded at the end of trading Friday (Saturday morning WIB), halting profits for four consecutive days, as the May US work report was stronger than expected and concerns about the US debt deal were over.

The most active gold contract for August delivery in the Comex division of the New York Exchange, slipped 25.90 dollars, or 1.30 percent, to close at 1,969.60 dollars per ounce, after hitting the highest level of the session at 2,000.50 US dollars and the lowest at 1,966.50 US dollars.

Gold futures jumped 13.40 US dollars or 0.68 percent to 1,995.50 US dollars on Thursday (1/6/2023), after raising 5.0 dollars or 0.25 percent to 1,982.10 US dollars on Wednesday (31/5/2023), and lifting 14.00 US dollars or 0.71 percent to 1,977.10 US dollars on Tuesday (30/5/2023).

For this week, next month's gold contract at Comex posted a 1.3 percent return, the first weekly increase in about a month.

Gold underwent a positive week even though the dollar rose for the second time in three sessions, as foreign exchange traders reacted to the Senate's approval of the debt ceiling deal which further required only President Joe Biden's signature to be promulgated.

The US Department of Manpower reported Friday (2/6/2023) that the US economy added 339,000 new jobs in May, better than market forecasts of 190,000 and marked the growth of positive jobs over 29 consecutive months. The unemployment rate rose to 3.7 percent in May, compared to an estimated 3.5 percent.

US labor in May was stronger than expected suggesting that the Federal Reserve may need to do more to tame inflation. However, rising unemployment rates in May acted to obscure prospects surrounding the movement of subsequent interest rates from the Federal Reserve.

Market analysts argue that the US consumer price index in mid-June could potentially offer a stronger signal of Fed's decision at its monetary policy meeting this month.

Another precious metal, silver for July delivery, shrank 24 cents, or 1.0 percent, to close at 23,747 dollars an ounce. Platinum for July delivery decreased by 6.60 dollars, or 0.65 percent, to settle at 1,003.50 dollars an ounce.