Gold Prices Rose with Weak Employment Data

Gold Prices Showed a Significant Increase

Gold prices saw a significant rise on Friday, catching the attention of investors.

Weak Employment Data Negatively Affected the Dollar

The employment data released in the U.S. showed signs of weakness in the labor market and strengthened expectations for a rate cut in December, which weakened the dollar. This situation contributed to the increase in the value of gold.

Demand for Safe Haven is Increasing

Additionally, the increasing possibility of a prolonged government shutdown in the U.S. has boosted demand for gold, seen as a safe haven by investors.

Spot Gold Prices and Weekly Change

Spot gold is trading at $3,994.03 with an increase of 0.4%. However, gold continues to show a 0.3% weekly decline. Since reaching a record high of $4,381.21 in October, it has lost about 8% of its value.

Job Losses and Layoffs

According to data released on Thursday, the U.S. economy lost jobs in October due to losses in government and retail sectors. Companies' cost-cutting measures and the adoption of artificial intelligence technology led to an increase in layoffs.

ANZ commodities strategist Soni Kumari commented, “Private sector employment data suggests that a rate cut is still possible in December. Therefore, gold prices are finding some support.”