Gold Rising After Strong U.S. Labor Market Data

The price of gold continues to rise today. Among investors are still evaluating the data from the recent policy decisions of the Bank of England (BOE) and the Federal Reserve.

Gold futures were up 0.40% at 9:00 p.m. ET by 0.40% to $1,800.65.

The BOE decided to leave the interest rate unchanged at 0.10%. The announcement of the policy decisions came as a surprise to investors. Investors had speculated that the BOE would take a stronger line against inflation and raise interest rates.

The ECB commented that while the central bank is aware of concerns about high inflation. But it is unlikely to raise interest rates in 2022. In other words, Madam Inflation in Frankfurt prefers higher inflation.

The U.S. Federal Reserve will start tapering the QE program in November but leave the interest rate policy unchanged.

In addition, the yield on 10-year U.S. Treasury bonds reached its highest level in a week, which should actually go against gold.

Meanwhile, 269,000 fewer initial claims for unemployment benefits were filed last week than expected.

Job growth in the U.S. returned to normal in October. According to a Labor Department report, nonfarm payrolls increased by 531,000 jobs in October. The unemployment rate fell to 4.6% in September.

Employment numbers are rising rapidly. This suggests that more Americans are returning to work after the number of people infected with COVID-19 dropped. In addition, employers are offering higher wages. More people were expected to return to work, as about 7.5 million people lost their government unemployment benefits in September.

In Asia, Japanese household spending fell 1.9% in September from a year earlier and rose 5% from the previous month.

Leave a Reply

Change Language
%d bloggers like this: