Gold prices rose significantly , reaching in this three-week high , after weak figures on employment in the United States have raised expectations that the Federal Reserve will keep its incentive program continued in 2014.
The Department of Labor reported that the number of people employed in the U.S. increased less than expected. It shows that before the temporary suspension of the U.S. government reduced the growth rate of the economy .
Employment growth in September was 148,000 , while employment growth in August was revised up to 193,000 ( higher than originally reported) . The average score of economists before the data output stood at 179,000 . Thus, the data came out much worse than expected.
The unemployment rate fell to a five-year low , 7.2 % - the lowest since November 2008 This is better than expected at 7.3 %. The decrease in the unemployment rate due to the low proportion of the economically active population - 63.2 %, the lowest level since August 1978 .
Note that the employment data had to go out on October 4 , but the temporary cessation of the government has resulted in the release of data transfer time .
According to analysts, investor sentiment is likely to remain depressed , which is also confirmed by the decrease in gold reserves in the world's largest exchange-traded fund - SPDR Gold Trust ( yesterday inventories fell by 10.51 tonnes to 871.72 million tonnes , showing the highest one-day drop since the beginning of July).
It should also be noted that physical demand for gold in India, which is the main consumer of the precious metal remains weak in anticipation of the beginning of the holiday season , which is generally considered to be a favorable time to buy jewelry.
The cost of the December gold futures on COMEX today rose to $ 1342.20 per ounce.
|remaining time till the new event being published|
All posted material is a marketing communication solely for informational purposes and reliance on this may lead to loss. Past performance is not a reliable indicator of future results. Please read our full disclaimer.