News

Gold prices remained steady in today’s trading after the release of the U.S. employment report. The disappointing results offset inflationary pressures and concerns about a potential interest rate hike at the Federal Reserve meeting scheduled for next week. Gold is currently trading around $4,075 per ounce.

[Source: Market screener]

Gold continues to retreat, coming under pressure following the escalation between the United States and Iran after the downing of a U.S. military helicopter. Global markets remain shaken, while inflation risk expectations are on the rise. The main factor weighing on gold is growing concern that the Federal Reserve may revise interest rates upward. Such a scenario is generally negative for the yellow metal, which does not generate interest income.

[Source: Investing.com]

The complex geopolitical environment continues to support the safe-haven asset, driven by rising oil prices and the strength of the U.S. labor market. The U.S. Federal Reserve (Fed) remains hawkish, with markets pricing in a further interest rate hike by December.It remains likely that the recent decline will be followed by a consolidation phase and then a recovery, as has occurred in the past. In the last ten similar situations, gold’s performance turned positive in 70% of cases.

[Source: Investing.com]