New Week Expectations in the Gold Market After US Employment Data
In the gold market, which declined as strong employment data increased rate hike expectations, US inflation data and oil prices will be monitored in the new week.
Gold ended the week with a decline as the strong non-farm payrolls data released in the US strengthened expectations for a rate hike. While ounce gold fell to $4,430, the markets will focus on US inflation figures to be released in the new week and the volatility in oil prices.
The Impact of Employment Data on Markets
According to the report by the US Bureau of Labor Statistics, non-farm employment increased by 162 thousand people in August, while the unemployment rate realized at 4.1 percent.
Following the release of these data, the probability of the US Federal Reserve raising interest rates at its September meeting rose from approximately 55 percent to 65 percent.
Pressure of Interest Rate Expectations on Gold
The rate hike expectation limits the appeal of gold, which does not offer a yield, in the eyes of investors, creating pressure on prices.
Developments in the Oil Market
While tensions in the Middle East keep concerns about energy supply alive, the futures price of US benchmark crude oil traded at $91.48 per barrel.
The increase in energy prices can trigger safe-haven demand, as well as pressure gold by pushing up bond yields and the dollar.
Critical Inflation Calendar
Markets are now focused on the producer prices data to be released on September 10 and the consumer prices data to be published on September 11.
These inflation data will be directional ahead of the Fed's meeting where the interest rate decision will be made on September 15-16.
Technical Levels and Targets
In downward movements in ounce gold, the first critical threshold is monitored as $4,400, and levels of $4,354 and $4,283 will be followed below this level.
In potential recoveries, the levels of $4,450, $4,500, and $4,534 are among the technical references.