Gold prices in the global market have rebounded after a period of volatility, with spot gold nearing its highest level since June, reaching 4057.92 per ounce.
Gold prices rose in the global market on Thursday, mainly due to weaker-than-expected economic data on employment in the US and a drop in crude oil prices. Investors are now waiting for the upcoming US non-farm payrolls report, which could have a significant impact on the Federal Reserve’s upcoming monetary policy decisions.
Spot gold prices in the international market rose 0.7 percent to $4,057.92 an ounce, which was close to its highest level since June in the previous session. On the other hand, US gold futures continued to trade at $4,070.10 an ounce with a slight decrease.
Gold prices initially closed near a seven-month low of $4,029.89 an ounce on Wednesday, but the market recovered after a weak U.S. private sector jobs report.
According to economic data, the U.S. private sector added 98,000 jobs, below market expectations. This situation has increased investors’ expectations that the upcoming official labor data may also be weak, which is likely to affect the Federal Reserve’s interest rate policy.
According to experts, gold is generally considered a safe investment during periods of inflation and economic uncertainty, but its attractiveness becomes relatively less attractive in a high-interest-rate environment because it does not yield any returns.
On the other hand, a senior Federal Reserve official has said that inflation concerns have eased somewhat in recent weeks, but the central bank’s target is still to maintain 2 percent inflation.
Meanwhile, the decline in crude oil prices has also affected the global gold market, while the lack of any major progress in the negotiations between Iran and the United States regarding the Strait of Hormuz has continued to cause uncertainty in the market. Investors are now focused on the US non-farm payrolls report, which could determine the direction of global financial markets in the coming days.
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