The price of gold fell after an employment growth in the US in June stronger than expected, but the losses were limited, says Thu Lan Nguyen, head of currency research and raw materials of Commerzbank.
The reverse for gold will probably be short -lived
“A more detailed analysis of the labor market report revealed some weaknesses. Much of the growth of employment occurred in the public sector, which could be due to technical factors and could lead to an opposite movement in next month. However, the slight decrease in the unemployment rate is a positive signal.”
“This should cause the US Federal Reserve to be optimistic, since the uncertainty about the US tariff policy has not yet severely affected companies. Therefore, we continue to assume that the Fed will take its time before cutting interest rates. This is creating winds against gold at the moment.”
“However, the main factor that supports precious metal is not the perspectives of interest rate cuts, but above all the American political harmful, which is eroding the confidence of investors in the safe assets of the USAs of the USA. Unless the US government gives a 180 -degree turn, yesterday’s reverse for the gold will probably be short duration.”
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
