Gold Loses Traction But Remains Above 2000 Amid More Rate Hikes

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Gold Loses Traction But Remains Above 2000 Amid More Rate Hikes

Gold Loses Traction But Remains Above $2000 Amid More Rate Hikes

After the new jobs report from the USA, one thing has become clear the Fed will not be stopping anytime soon. This means more rates are to come during the rest of 2023, which is not good news for Gold & other non-yielding assets.

After the report, the Gold prices retreated from the high of $2080 and dipped below $2000 briefly. For now, the Gold contract for June is $20234.80, which is $30.90 down from its recent high.

Gold Spot Trading Price Is $2015.69

If we look at the gold's spot trading price, it is near $2015.69, which is 1.7% from the recent high. Earlier during the session, the Gold spot price dipped below the support level of $2000. In fact, the spot gold managed to touch the $19996 intraday low only to jump back above the $2K.

For the most part, economists were expecting the US economy to add 180K new jobs. However, the data showed 253K new jobs in the US economy, which is 40% higher than expectations. However, the department ended up revising the data for March from 263K to only 165K.

However, let's not forget that the job number is what matters the most to traders. And if we look at that, it becomes clear that any hopes of a pause in rate hikes during June are no longer on the cards.

In addition, the Fed has made it clear that its policy will be driven by data rather than emotions or politics. However, the major highlight is most definitely the strength of the US labour market, which continues to remain strong.

All of this means that the Fed can continue its battle against inflation in the form of rate hikes. And this policy is bad news for Gold, Silver, and other commodities. In fact, it would also mean more USD strength in the coming months as other central banks put a pause on their rate hike policy.

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