Gold prices fall following stronger US employment data
Bullion prices slipped as much as 1.5 per cent following a US nonfarm payrolls report that increased speculation regarding Federal Reserve interest rate hikes.
Gold prices fell in New York after a strong US nonfarm payrolls report led to speculation that the Federal Reserve will raise interest rates to control inflation, according to Mint.
Spot gold dropped 0.8 per cent to $4,055.42 an ounce by 12:40 p.m. in New York, while bullion had previously slipped as much as 1.5 per cent toward $4,020 an ounce.
Traders are weighing diplomatic efforts to end the Middle East conflict against losses in the artificial intelligence trade. Traders have largely priced in a Fed rate hike in December as high energy prices complicate inflation control.
Analysts at Goldman Sachs Group Inc. cut their year-end gold forecast from $4,650 an ounce to $4,150 an ounce. They noted that rising interest rates and inflation volatility make it difficult for fast money funds to maintain long positions.
The analysts suggested that the current price correction may offer an attractive entry point for longer-horizon investors looking at central bank gold accumulation or protection against macro policy tail risks.
On Wednesday, the precious metal had jumped nearly 4 per cent on midterm results as Treasury yields and oil fell. Silver dipped 0.03 per cent to $51.76 an ounce, while the Bloomberg Dollar Spot Index rose 0.4 per cent.
