SHIBNOBI XAUUSD: where will gold be when non-farm is announced
The gold market is holding almost all of its gains this week and has had little reaction to the steady inflation pressures announced on Thursday. Specifically, according to the US Department of Commerce, the individual consumer spending price index. Core PCE rose 0.2% last month, compared with 0.2% gain in June. Meanwhile, inflation over the past 12 months increased by 4.2%, slightly up from the level. 4.1% in June. Inflation increased in line with economists' expectations.
With the new data released, many analysts say there is a growing possibility that the US Central Bank will be forced to end the tightening cycle before inflation is reduced to its target level. Market expectations for a rate hike by the US Federal Reserve (Fed) remained relatively unchanged following the PCE data. Markets see the Fed pausing rate hikes at next month's meeting and see a 50/50 chance of a 25 basis point adjustment in November.
In one year, consumers have burned through their savings and are now saddled with record levels of debt, said Adrian Day Asset Management, president. He added that the higher interest rates remain, the more likely it is that consumers will have difficulty paying off their debt. Earlier this month, the New York Fed reported that consumer debt increased by $1 trillion between April and June.
Currently, the market is still waiting for the August employment report to be released today (US time). The key nonfarm payrolls number is expected to rise to 170,000, compared with a gain of 187,000 in the July report.
With the new data released, many analysts say there is a growing possibility that the US Central Bank will be forced to end the tightening cycle before inflation is reduced to its target level. Market expectations for a rate hike by the US Federal Reserve (Fed) remained relatively unchanged following the PCE data. Markets see the Fed pausing rate hikes at next month's meeting and see a 50/50 chance of a 25 basis point adjustment in November.
In one year, consumers have burned through their savings and are now saddled with record levels of debt, said Adrian Day Asset Management, president. He added that the higher interest rates remain, the more likely it is that consumers will have difficulty paying off their debt. Earlier this month, the New York Fed reported that consumer debt increased by $1 trillion between April and June.
Currently, the market is still waiting for the August employment report to be released today (US time). The key nonfarm payrolls number is expected to rise to 170,000, compared with a gain of 187,000 in the July report.
Comment:
Positive economic information and increased value of profitable assets have caused investors to return to taking profits on gold, pushing precious metal prices down. Today (September 1), the US will release the August jobs report and unemployment rate. If employment data is positive, gold will certainly continue to lose value. Because then the USD will continue to strengthen.
