Gold Prices Increased with Weak Employment Data

Gold Prices Showed a Significant Increase

Gold prices recorded a significant increase on Friday, attracting the attention of investors.

Weak Employment Data Negatively Affected the Dollar

The private sector employment data released in the U.S. indicated 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 appreciation of gold.

Demand for Safe Haven is Increasing

Additionally, the possibility of an extended government shutdown in the U.S. has increased demand for gold, seen as a safe haven by investors.

Spot Gold Prices and Weekly Change

Spot gold is trading at 3,994.03 dollars, up 0.4 percent. However, gold continues to show a 0.3 percent decline on a weekly basis. Since reaching a record level of 4,381.21 dollars in October, it has lost approximately 8 percent 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 the government and retail sectors. Companies' steps to cut costs and the adoption of artificial intelligence technology have led to an increase in layoffs.

ANZ commodity strategist Soni Kumari commented, "Private sector employment data still indicates that a rate cut in December is possible. Therefore, gold prices are finding some support."