Gold prices currently sit at $2,650 an ounce this Monday morning, up slightly from $2,645 at the beginning of last week.
Gold faced early selling pressure Friday morning after a report from the Bureau of Labor Statistics showed a significant boost in economic activity, creating 254,000 U.S. jobs last month. September's nonfarm payrolls data also significantly beat expectations for a gain of 147,000. At the same time, wages rose more than expected, increasing by 0.4% last month.
Ahead of the report, markets were pricing in a 30% chance that the Federal Reserve would cut interest rates by 50 basis points in November. However, those expectations are less likely.
The 10-year U.S. Treasury Bill, a key benchmark for long-term interest rates, is over 4% this morning, a reaction to the substantial employment numbers and wage growth that have tampered with expectations of a faster rate of Federal Reserve interest rate cuts in the remainder of 2024.
Potential Market-Moving Events
Thursday: Core CPI (Consumer Price Inflation)
Friday: Core PPI (Producer Price Index
Monday-Friday: Federal Reserve Leadership Speeches, including Fed Governor, Fed Vice-Chair and Fed Presidents
One year ago, on October 7, 2023, Hamas fighters poured across the Gaza border in an attack that left 1,200 Israelis dead. The ongoing war in the Middle East, particularly the recent event where Iran fired 201 missiles into Israel, continues to significantly increase demand for gold when escalations are high. The Israeli Defense Force (IDF) plans to respond significantly but has not detailed the nature of that response.
Many investors turn to precious metals like gold and silver to hedge against uncertain economic times, inflation, and global conflicts. It's worth noting that precious metals have historically held their value during stock market volatility, providing a reliable investment option during turbulent times.
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byUnited States Gold Bureau