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Gold closed higher on Friday, but fell for a third straight week as investors rallied on new data for the US economy, which continued to create new jobs in April despite a spike in inflation and persistent problems in global supply chains. which continue to impede the smooth running of businesses.
In particular, as it became known today, the US economy added another 428,000 jobs in April, a size corresponding to the previous month and better than the estimates of analysts who spoke of 380,000 jobs.
In this climate, the gold delivery of June gained $ 7.10 or 0.4% and closed at $ 1,882.80 an ounce. It was noted that on Thursday it had an increase of 0.4% to $ 1,875.70 an ounce. However, on a weekly basis, the precious metal fell 1.5%, marking the third consecutive weekly decline. This is the largest weekly downtrend since December 3, 2021, according to Dow Jones Market Data.
“We expect greater investment demand for gold this year,” said Robert Minter, a senior abrdn executive. He noted that markets are finding it difficult to assess the new interest rate regime as central bankers try to curb inflation.
“It is clear that there will be higher interest rates,” he said, adding: “Clearly, there will be higher inflation. The question is whether we will have dramatically higher interest rates.”
Gold and silver traded lower on Thursday, as Wall lost heavily. Bond yields have risen and the dollar has risen as investors worry that the US Federal Reserve (Fed) may not be able to control inflation without causing a slowdown.
The Fed raised interest rates by 50 basis points on Wednesday. The Bank of England also raised interest rates for the fourth time, while offering an ominous economic outlook. The European Central Bank is also expected to raise interest rates in July.
In other metals, the July delivery silver lost 0.3% to $ 22.367 an ounce, losing on a weekly basis and also falling for the third consecutive week and the worst weekly declining series since December 10, 2021.
Meanwhile, the July delivery of copper lost 0.5% and closed at $ 4,267 a pound. End, the platinum delivery in July fell $ 15 to $ 956 an ounce and the palladium of June delivery closed at $ 2,023.20 an ounce with a “dip” of 7.1%.