Gold price on Friday was down by one per cent as the gold rate was set for a weekly decline. Spot gold fell 0.9 per cent to $4,039.79 per ounce. U.S. gold futures for December delivery fell 0.6 per cent to $4,037.10 per ounce. Along with these gold has dipped 0.9 per cent this week.
"The prospect of further rate cuts has been somewhat doomed by decent labour market data that came out yesterday. I think that's really the primary factor" weighing on gold, said Nitesh Shah, commodities strategist at WisdomTree.
However, the fundamentals for gold remain intact and "factors such as slowing economic growth, expensive equity market valuation, geopolitical uncertainty, and diversification away from U.S. assets are likely to sustain robust investment demand and central-bank buying", ANZ said in a note.
"I do think we are at the floor for gold prices at the moment. Prices may temporary go a little bit lower, but in general the path will be higher over the coming months," WisdomTree's Shah said.
Thursday's delayed U.S. jobs report offered a mixed view of the labour market, with non-farm payrolls increasing by 119,000 jobs, compared with estimates of 50,000, but the jobless rate hitting a four-year high.
The next jobs report is due only after the Fed's December meeting, at which traders now see a 41 per cent chance of a rate cut.
Gold tends to do well in low-interest-rate environments. Cleveland Fed President Beth Hammack, who opposed the Fed's most recent rate cut, on Thursday cautioned against lowering borrowing costs further due to inflation.
Meanwhile, physical gold demand across major Asian markets remained weak this week, as volatility in rates deterred potential buyers from making purchases.
A1. Spot silver fell 3.2 per cent to $48.99 per ounce, platinum lost 1.4 per cent to $1,490.87, and palladium was down 1.2 per cent to $1,361.42.
Q2. What does U.S. jobs report reveal?
A2. Thursday's delayed U.S. jobs report offered a mixed view of the labour market, with non-farm payrolls increasing by 119,000 jobs, compared with estimates of 50,000, but the jobless rate hitting a four-year high.
"The prospect of further rate cuts has been somewhat doomed by decent labour market data that came out yesterday. I think that's really the primary factor" weighing on gold, said Nitesh Shah, commodities strategist at WisdomTree.
However, the fundamentals for gold remain intact and "factors such as slowing economic growth, expensive equity market valuation, geopolitical uncertainty, and diversification away from U.S. assets are likely to sustain robust investment demand and central-bank buying", ANZ said in a note.
"I do think we are at the floor for gold prices at the moment. Prices may temporary go a little bit lower, but in general the path will be higher over the coming months," WisdomTree's Shah said.
Thursday's delayed U.S. jobs report offered a mixed view of the labour market, with non-farm payrolls increasing by 119,000 jobs, compared with estimates of 50,000, but the jobless rate hitting a four-year high.
The next jobs report is due only after the Fed's December meeting, at which traders now see a 41 per cent chance of a rate cut.
Gold tends to do well in low-interest-rate environments. Cleveland Fed President Beth Hammack, who opposed the Fed's most recent rate cut, on Thursday cautioned against lowering borrowing costs further due to inflation.
Meanwhile, physical gold demand across major Asian markets remained weak this week, as volatility in rates deterred potential buyers from making purchases.
FAQs
Q1. What is silver price?A1. Spot silver fell 3.2 per cent to $48.99 per ounce, platinum lost 1.4 per cent to $1,490.87, and palladium was down 1.2 per cent to $1,361.42.
Q2. What does U.S. jobs report reveal?
A2. Thursday's delayed U.S. jobs report offered a mixed view of the labour market, with non-farm payrolls increasing by 119,000 jobs, compared with estimates of 50,000, but the jobless rate hitting a four-year high.
