gold declines with strong payroll and interest rates in the US, but ends the week on a high
Robust employment data in the United States raises bets on monetary tightening by the Fed and puts pressure on precious metals on the Comex.
BY THE X-TRADER NEWS NEWSROOM · REPORTING FROM MONEY TIMES · 2 MIN
The precious metals market ended the session with losses on the Comex, pressured by the release of the American employment report. according to money times, the gold contract for December registered a drop of 0.94%, quoted at us$4,074.9 per troy ounce on December 6th.
In the same sense, according to money times, silver for December fell 0.83%, closing at US$51.942 per troy ounce. despite the daily negative movement, the weekly balance showed significant gains for both assets.
According to data collected by Money Times, gold accumulated a weekly increase of 4.51%, while silver registered an appreciation of 5.41% in the period. Volatility was dictated by United States labor market numbers.
according to infomoney, the October payroll revealed the creation of 165 thousand jobs, while the unemployment rate fell to 4.1%. The economic recovery scenario strengthened the prospect of continued monetary tightening.
infomoney pointed out that the probability of a 0.25 percentage point interest rate hike by the fed in December rose to around 80% after the release of the report, compared to a chance of approximately 75% before the data was published.
What changes for the investor
The strengthening US labor market and the prospect of higher interest rates from the Federal Reserve increase the opportunity cost of holding non-yield assets such as precious metals. For those who operate on the stock exchange, nadaq and foreign exchange, the scenario requires constant monitoring of the monetary policy of the United States, since the trajectory of basic rates directly influences the attractiveness of American fixed income and the dynamics of the dollar against other currencies.
Automatically translated from Portuguese.
