Gold Falls Slightly… Is This Just a Warm-Up?
Gold prices finally fell after five consecutive days of gains. This decline occurred as many investors began to take profits, while awaiting a series of US economic data this week that could provide clues as to whether the Fed will continue to cut interest rates.
Gold (bullion) briefly fell as much as 0.6% to around $4,280 per ounce. Despite the decline, it remains near its October record high, as it remains about $100 shy of its peak reached after the Fed's third rate cut last week.
According to Vantage Markets analysts, profit-taking at these highs makes gold's movement appear "up-and-down." But here's the thing: every time gold dips, buyers quickly step back in, so the correction isn't seen as a sign of a weakening trend—more like a "resting" phase before determining the next direction.
The market's focus now is on the release of US data, which was delayed due to the six-week government shutdown. The most anticipated is Tuesday's jobs data, with estimates of around 50,000 payrolls and unemployment at 4.5%—meaning the market sees employment slowing, but not yet collapsing.
If this jobs data turns out to be weaker than expected, the chances of the Fed making further interest rate cuts could increase. Lower interest rates typically support gold, as it doesn't pay interest, making it more attractive when yields fall. This week also features several Fed officials speaking, and inflation data will be released on Thursday.
Broadly speaking, gold has risen more than 60% so far this year, while silver has more than doubled—heading for its best annual performance since 1979. This rise has been supported by high central bank buying, investors reducing interest in bonds and currencies, and inflows into gold ETFs, which have mostly risen for most of the year. At the last update, gold was down about 0.5% to $4,285.79 in Singapore, while silver fell 2.7% after an earlier surge. (Asd)
Source: Newsmaker.id
