Gold Prices in Search of Balance: U.S. Employment Data is Impactful

Gold Prices in Search of Balance

Gold is trending sideways after a three-day increase, amid rising expectations for interest rate cuts due to the U.S. government's reopening process and a weak labor market. On Wednesday morning, gold prices surpassed $4,145 per ounce, partially retracing its gains.

Employment Data Raises Concerns

According to ADP Research data, U.S. companies laid off an average of 11,250 employees per week over the past four weeks. This figure increases concerns about weaknesses in the U.S. labor market, prompting discussions on further interest rate cuts.

Uncertainty to Decrease with End of Government Shutdown

Investors are awaiting official data to be released following the end of the longest government shutdown in U.S. history. With the Senate's approval of the temporary budget proposal, the planned reopening in the coming days will reduce dependency on private data and provide more certainty about future interest rate decisions.

Change in Investor Behavior

Gold has pulled back from the $4,380 level it reached last month. Some investors shifted to profit-taking after the rapid rise, resulting in net outflows from gold-based exchange-traded funds (ETFs) over the past three weeks.

As of 09:48 Singapore time, gold was trading at $4,134.01 per ounce, up 0.2%. Additionally, the Bloomberg Dollar Spot Index increased by 0.1%, while precious metals such as silver and platinum also showed slight gains.