Gold futures experienced an upward adjustment in price on Monday, June 5, as investors expressed their expectations that the Federal Reserve (Fed) would halt its interest rate hikes in the upcoming meeting.
The closing price of gold futures saw a $4.70 increase, reaching $1,974.30 per ounce.
On Friday, June 2, the gold futures market witnessed a more than 1% increase in price as concerns regarding the US economy and potential default on US debt eased. Additionally, the release of the US nonfarm payrolls report, which indicated a significant jump of 339,000 jobs in May, contributed to the positive sentiment.
According to the US Department of Labor, the nonfarm payrolls exceeded analysts’ expectations of 190,000 jobs. However, the unemployment rate rose to 3.7 percent, slightly above the projected 3.5 percent.
US President Joe Biden applauded the robust job numbers and highlighted the bipartisan agreement to raise the debt ceiling, stating that it would continue to stimulate the US economy.
The market responded to the employment figures, interpreting them as a sign of a strong labor market with employment consistently increasing for the 29th consecutive month. As investors assess the implications of these developments, their focus shifts to the Federal Reserve and its potential decision on interest rates. The central bank’s stance on rate hikes will likely have a significant impact on the trajectory of gold futures and the overall market sentiment in the coming days.
The Spot Market is Open
Tuesday, June 6, 2023