Gold price shows little reaction to jobs data
Gold touched another new high on Thursday before falling heavily as some investors booked profits after the metal’s latest record-setting rally.Earlier in the day, spot gold set a new record of $2,789.90 an ounce, but later fell by as much as 2% as the selloff began. By 1:15 p.m. EDT, it was down 1.6% to $2,742.08 per ounce.Meanwhile, US gold futures declined 1.8% to $2,752.10 per ounce, having crossed the $2,800 mark during the trading session.Still, gold remains on pace for a fourth straight monthly gain, highlighting its ascent in 2024 and status as one of the best-performing commodities of the year so far.New US dataGold’s rollercoaster ride follows the release of strong US economic data that boosted the chance of a cautious approach to interest rates in the months ahead. Another rate cut would bode well for the non-interest-bearing bullion.Fresh data showed overall inflation in the US came in at 2.1%, the lowest since early 2021 and just above the central bank’s 2% goal. Inflation-adjusted consumer spending advanced 0.4%, an acceleration from the prior month supported by continued growth in wages and salaries.Prior to Thursday’s movement, gold had surged by more than a third this year, buoyed by global central bank buying and haven demand amid conflicts in the Middle East and Ukraine.The recent advance had taken the metal’s 14-day relative-strength index above 70, a level that can suggest the market has become overbought, according to Bloomberg analysis.The tight US presidential race is also creating uncertainty that’s underscoring bullion’s role as a place of safety for investors. The Nov. 5 election may open gold up to a correction of more than $100 an ounce, said Ole Hansen, head of commodity strategy at Saxo Bank A/S.(With files from Bloomberg)Weiter zum vollständigen Artikel bei Mining.com
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