Ahead of Important Data, Is Gold Quietly Ready to Run?
The world gold price is currently moving steadily around $3,330 per ounce after rising 2% in the last two days. Investors are waiting for two important things from the United States: June employment data and the House vote on President Donald Trump's multi-trillion dollar tax bill. If the bill is passed, the US budget deficit could widen to $3.3 trillion in 10 years, which could increase interest in gold as a hedge asset.
In addition, market attention is also focused on the US employment report to be released this Thursday. Analysts expect there to be a slowdown in job growth and an increase in the unemployment rate. If true, this could encourage the Federal Reserve to consider cutting interest rates, which is usually good news for gold prices because this commodity does not produce interest and will be more attractive than low-interest assets.
Although the US dollar index rose slightly, gold prices remained stable due to market concerns about geopolitical tensions, trade tariff policies, and fiscal uncertainty in the US. In addition, demand from central banks and the flow of funds to gold-based investment products also supported prices. Currently, gold prices are still about $170 below their record high in April, but market sentiment remains supportive of the positive trend.
Source: (ayu-newsmaker)
