Gold prices stabilize before new US jobs data

Mohammed Abdelkhalik
October 8, 2021
gold prices

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Gold prices witnessed stability during the trading session today in the European market within a narrow range of transactions, in light of the investors’ reluctance to build any new purchasing positions in anticipation of the release of many important economic data in the United States on the labor market, especially the new jobs data in the non-agricultural sector.

Gold prices settle above $1750

Gold prices

At exactly 09:40 GMT, the spot price of gold was stable at the level of 1756.25 US dollars an ounce, from the opening level of today’s session at 1756.33 dollars, and the highest price was at 1770.46 dollars an ounce.

In the US futures contracts, gold settled unchanged to remain at the level of 1758.40 dollars an ounce.

Over the course of this week’s trading, which officially ends at today’s settlement, gold prices are still declining so far by an average of 0.5%, approaching towards recording a new weekly loss, the fourth in the last five weeks, this decline came due to the rise in the long-term US Treasury bond yield.

US bond yields rise

The US 10-year Treasury yield rose by more than 1.5% on Friday, extending its gains for the second consecutive session, hitting a four-month high at 1.601.

And as we know that the high yield puts negative pressure on gold price movements and increases the opportunity cost of acquiring the non-yielding metal.

These developments in the US bond market come ahead of the release of several important economic data in the United States on the labor market during the month of September, especially new jobs data in the non-agricultural sector, which may provide more evidence about when the Federal Reserve will begin to reduce its program To buy bonds as an essential step that comes before going ahead with raising interest rates.

Expected economic data

All eyes are on market participants at the moment to the new jobs data in the United States for a referendum on more indicators regarding the extent of the labor market recovery in the largest economies in the world, and monetary policy decisions in the near term by the Federal Reserve.

Where it is scheduled at 12:30 GMT to release those data, and expectations indicate that the US economy will add about 490 thousand new jobs during the previous month of September, compared to the addition of 235 thousand jobs last August, with the unemployment rate dropping to the level of 5.1% Compared to 5.2%, average hourly income per capita is also released and is expected to rise by 0.4% from a rise of 0.6% the previous month.

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.