The gold price briefly rose to $1782.05 after the disappointing U.S. jobs data, but after a short time found itself back at almost the same level as earlier in the day.
The gold price is at $1758.10 per ounce in the evening Asia time 10:50 PM GMT+7.
After the labor market report with only 194k new jobs was far below expectations of around 500k, the gold price jumped up. A short time later, however, he found himself back at the starting level. Probably some have not classified the labor market data as critical, arguing with the well not quick starting tapering of the Fed in the back of the head.
Or maybe it’s the rising U.S. 10-year Treasury note.
We strongly believe that the current environment is absolutely bullish for gold as in fact, Treasury yields cannot keep up with rising inflation. This means that real interest rates are already far below the floor. Ergo, we see a rising gold price absolutely realistic in the near future. When this will happen, however, is difficult to say.
But it is worth taking a look at gold mines, as gold producers are generating a lot of cash flow at a gold price of around $1750.
So what remains of the day? Question marks as to who is running the show in Washington, low job creation numbers, and the Fed in a bind.
And then there was the debt ceiling issue. Honestly, with the topic, we have now been scared 78 times and slowly everyone is now smiling about it. Maybe Washington should slowly change the script to get the curve in the hopeless debt policy and ideological authoritarianism.