Gold News: The FED Uncertainty Puts Pressure On Gold Price
Gold News
On Friday, US reported payrolls data which was expected to provide more information about the timing of the FED interest rate’s rise. Nevertheless, the uncertainty remains and gold price suffers from this uncertainty. Gold reached a 2-1/2-week low on Monday. Spot Gold was at $1,123.15 an ounce and on Friday it went down to $1,116.75.
US non-farm payrolls increased 173,000 this month; a lower gain compared to the 245,000 job expansion in July. Investors had been seeing the job report as a signal to evaluate the strength of the economic recovery and whether the FED is going to rise its rate later this month. Although US data was below expectations, the labour market seems to be in a good health. We expected that gold prices will be under pressure until the meeting of the FED in mid-September. And if the rate increases, gold will become less attractive as it doesn’t pay interest.