Gold prices rise and attention on the US labor market data

Mohammed Abdelkhalik
August 4, 2021
Gold prices

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Gold prices rose during the trading session today in the European market, to approach the recording of their first daily gains during the last four sessions, with consolidation in trading above the important psychological barrier of 1800 dollars an ounce.

This rise came thanks to the weak performance of the US dollar index against most currencies, according to the inverse relationship between them, Prices also received more support recently, after statements by some Federal Reserve officials, which reduced the prospects of imminent tightening of US monetary policy.

This comes at a time when investors are awaiting, throughout this week, many important economic data on the labor market in the United States, which may provide any new indications about the timing of the Fed’s announcement to start tightening monetary policy.

Gold prices and dollar movements

Gold prices

By 09:25 GMT, the gold prices were up by 0.3%, to trade around the level of $1815.15 an ounce, from the opening level of today’s session at $1810.52, and the lowest price was at $1808.99 an ounce.

Gold rose in US futures contracts by about 0.2%, recording the level of $ 1816 an ounce.

In terms of the dollar index trading, the index stabilized during today’s trading without change to remain at the level of 92.05 points, this comes in light of the investors’ reluctance to build any new purchasing positions in anticipation of the release of important data throughout this week on the US labor market.

The index had ended yesterday’s trading, up by less than 0.1%, in the second daily gain during the last three sessions, as part of the continuation of recovery processes from the lowest level in nearly four weeks at 91.78 points.

Expected economic data

Market participants are awaiting many important economic data this week, on the US labor market, starting today with the release of the number of new jobs added by the US private sector during the month of July.

As it is scheduled at 12:15 GMT to release the ADP reading to measure new jobs in the US private sector, expectations have indicated that the largest economy in the world will add about 695,000 new jobs during the previous month of July, compared to the addition of 692 thousand jobs in June.

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.