Shinobi - XAUUSD: Rise after weak economic data
World gold price this morning increased slightly with spot gold up 6.5 USD to 1,943 USD/ounce. December gold futures last traded at $1,971.2 per ounce, up $6.3 from dawn yesterday.
Gold continues to increase as newly released data shows that the labor market is showing signs of cooling and the world's leading economy is slowing down. Specifically, the report on gross domestic product in the second quarter of the US Bureau of Economic Analysis showed that the economy grew by 2.1%, lower than expected. According to consensus estimates, economists expect growth of 2.4%. The closely watched personal consumption expenditures (PCE) price index in the second quarter rose 2.5% from the first estimate of a 2.6% increase. All of these numbers favor those who support the US Federal Reserve (Fed) to delay further interest rate increases.
The most recent jobs report also shows that the labor market is cooling down. According to ADP's latest report, 177,000 jobs were created last month. The data missed expectations with economists forecasting a job gain of around 194,000. Along with weaker job growth, the report also noted slowing wage growth across the country.
XAUUSD
SELL 1947 - 1949
TP1: 1942
TP2: 1937
SL: 1953
Gold continues to increase as newly released data shows that the labor market is showing signs of cooling and the world's leading economy is slowing down. Specifically, the report on gross domestic product in the second quarter of the US Bureau of Economic Analysis showed that the economy grew by 2.1%, lower than expected. According to consensus estimates, economists expect growth of 2.4%. The closely watched personal consumption expenditures (PCE) price index in the second quarter rose 2.5% from the first estimate of a 2.6% increase. All of these numbers favor those who support the US Federal Reserve (Fed) to delay further interest rate increases.
The most recent jobs report also shows that the labor market is cooling down. According to ADP's latest report, 177,000 jobs were created last month. The data missed expectations with economists forecasting a job gain of around 194,000. Along with weaker job growth, the report also noted slowing wage growth across the country.
XAUUSD
SELL 1947 - 1949 TP1: 1942
TP2: 1937
SL: 1953
Comment:
Analysts are now closely watching the labor market as it can determine when the US central bank stops raising interest rates. The Fed has said it will need to consider a slowdown in the labor market as a condition for ending the current tightening cycle.
