Gold price hits five-week low ahead of US jobs data

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The price of gold continued to record its losses during trading today, Wednesday, in the European session for the third day in a row, to reach the lowest level in five weeks. next week.

At exactly 10:05 GMT, gold prices fell to reach the price of an ounce at $ 1212.45 from the opening price at $ 1215.48, and the highest price per ounce was recorded at $ 1218.44, while the lowest price was recorded at $ 1211.30, which is the lowest in five weeks.

At the close of trading on Tuesday, the gold price incurred losses by about 0.8% for the second consecutive day, due to the decline in the demand for buying safe investments in the financial markets in light of the strong expectations of raising US interest rates next week.

gold price

Expectations of raising interest rates during the Reserve Bank’s meeting that will be held next week have risen to reach 80%, and this rise comes after statements made by the bank’s president, “Janet Yellen” last Friday at the Executives Club in Chicago, in which she praised the strength of the US economy and the arrival of inflation rates. Growth and labor sector data are among the bank's targets, which may push the bank to raise interest rates in the near future.

During today's trading, the US dollar index rose by 0.2%, recording the third consecutive daily gain, which reflects the increased purchasing operations of the US dollar against other major currencies, especially European.

It is expected that the US economy will release many data related to the labor sector, as the ADP index to measure new jobs in the private sector for the month of February will be released today, and tomorrow, Thursday, it will announce the weekly jobless claims, which recorded last week the lowest levels since 1973, and on Friday, the monthly non-agricultural sector jobs report for February will be released.

Yesterday, gold holdings of the largest global index funds backed by gold “SPDR Gold Trust” settled at their levels unchanged, bringing the total holdings at 836.77 metric tons, the lowest since last February 10.

Mohamed Abdel Khaleq

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