The prospect of interest rates weighs heavily on GOLD
According to the U.S. Bureau of Labor Statistics, U.S. nonfarm payrolls added 209,000 in June. The number for the month was slightly lower than the consensus estimate of about 224,000.
The US unemployment rate fell in line with expectations to 3.6% from 3.7% in May.
Overall, the market is still pricing the Fed for another 25 basis point rally this month and this is not good for gold. Gold is very sensitive to rising US interest rates, which increases the opportunity cost of holding non-yielding gold.
The US unemployment rate fell in line with expectations to 3.6% from 3.7% in May.
Overall, the market is still pricing the Fed for another 25 basis point rally this month and this is not good for gold. Gold is very sensitive to rising US interest rates, which increases the opportunity cost of holding non-yielding gold.
