Gold prices rise ahead of US jobless claims

Mohammed Abdelkhalik
October 21, 2021
Gold prices

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Gold prices rose slightly during the trading session today in the European market, to maintain their daily gains for the third consecutive session.

This comes at a time when investors are awaiting several important economic data in the United States about weekly jobless claims, which may provide more new indications about the strength of the American labor market.

Gold prices are back up

By 09:45 GMT, the spot price of gold was up by about 0.45%, to trade around the level of 1789.50 US dollars an ounce, from the opening level of today’s session at 1781.55 dollars, and recorded early in the session the lowest price at 1780.83 dollars an ounce.

Gold rose in US futures contracts by 0.1%, recording the level of 1790 dollars an ounce.

At the conclusion of trading yesterday, Wednesday, the precious metal “gold” managed to achieve gains by 0.75%, to record its second consecutive daily gain, as prices received more support recently thanks to the weak performance of the US dollar against most currencies.

The USD continues rising

The US dollar index rose during today’s session by more than 0.1%, to approach towards recording its first daily gains during the last seven sessions, to consolidate above its lowest level in three weeks at 93.49 points, recorded earlier in trading, reflecting the halt in selling the US currency against most currencies. The main and secondary, which currently reduce the gains of gold and the rest of the other metals priced in dollars according to the inverse relationship between them.

The index ended yesterday’s trading, down by 0.2%, in the sixth consecutive daily loss, following the statements of some monetary policy officials at the Federal Reserve.

The two members of the council’s policy committee said on Wednesday that while the central bank should start winding down its stimulus measures, it was too early to raise interest rates.

On the other hand, the shares of Evergrande Company fell by more than 12% on Thursday, after trading on the stock resumed after stopping for more than two weeks, and after the Chinese company, which suffers from the largest indebtedness in the world, announced in a statement late on Wednesday that the deal to sell a share 50.1% in its real estate services business to Hobson Inc. fell.

Expected economic data

In order to re-evaluate the state of the labor market in the United States, investors are awaiting later today, the release of weekly jobless claims, and the positivity of this data will contribute to strengthening the dollar’s current gains.

As it is scheduled at 12:30 GMT, the US jobless claims will be released, and expectations have indicated that 298 thousand applications during the week ending on the fifteenth of this month, from 293 thousand applications during the previous week, which is the lowest reading since March 2020.

Author Mohammed Abdelkhalik

Professional Trader and Analyst, economist in Financial and Forex market since 2004.holds an MBA from the American University in Egypt. Mohammed works as an economic writer and technical & fundamental analyst for many international Forex and financial trading companies in both English and Arabic on a daily basis.