Gold Prices Strengthen Due To US Work Data That Makes Federal Reserve Consider Rising Interest Rates
JAKARTA - Gold prices strengthened slightly at the end of trading Friday (Saturday morning WIB), reversing from previous session losses, as US work data slowed down conveying a message that the Federal Reserve may not immediately raise interest rates further.
The most active gold contract for December delivery in the Comex New York Exchange division, raised 1.20 dollars, or 0.06 percent, to close at 1,967.10 US dollars per ounce, after trading to the highest session at 1,980.20 US dollars and the lowest at 1,960.70 US dollars. Gold futures slipped 7.10 US dollars or 0.36 percent to 1,965.90 US dollars on Thursday 31 August, after an increase of 7.90 US dollars or 0.40 percent to 1,973.00 US dollars on Wednesday 30 August, and jumped 18.30 US dollars or 0.94 percent to 1,965.10 US dollars on Tuesday 29 August. For this week, futures contracts rose 1.40 percent, although it slumped 2.00 percent throughout August. Gold rose then down from its highest level as non-farm payroll (non-farm payroll) data for August, at least, signaled that interest rates might not rise further, something that Craig Erlam, an analyst on the trading platform, said. online OANDA. US Labor Department reported on Friday September that the US added 187,000 jobs in August but the unemployment rate jumped unexpectedly to 3.8 percent from 3.5 percent in July, reflecting the impact of high interest rates and gradual cooling of the US economy due to the boom that occurred after the lockdown due to the pandemic. declining employment data, combined with expectations that the Federal Reserve will reconsider the increase "This month's interest rate supports gold." Despite some progress, inflation is still well above the Federal Reserve's target of 2.0 percent, the president of the Cleveland Federal Reserve, totaling Mester at a European Central Bank research conference on Friday, September 1. Referring to the labor market, Mester said some progress has been made in bringing demand and supply into a better balance, but the job market is still strong. Job growth slows down and employment has decreased, but the unemployment rate is low, which is 3.8 percent. The Fed has three more opportunities to raise interest rates this year, with the Federal Open Market Committee (FOMC) which is a policymaker, having interest rate decisions scheduled for September 20, November 1, and December 13. With jobs still growing bigger than expected every month, the central bank can choose one or two interest rate increases again in the year this.Other economic data released on Friday are diverse. The US Manufacturing Manufacturing Manager Index (PMI) from Global S&P fell to 47.9 in August from 49.0 in July, showing a stronger decline in operating conditions in US goods manufacturers.