- Gold climbed higher this week, with prices rising over 1.25% as Friday's nonfarm payrolls report showed an increase in the unemployment rate and the ISM Manufacturing Index indicated continued weakness in U.S. industry.
Daniel Pavilonis, Senior Commodities Broker at RJO Futures, sees gold hitting a hard ceiling in the short term. "I think inflation is starting to be quote-unquote"confirmed,' that this is going to be around a lot longer," meaning the Fed is unlikely to cut rates before the end of 2024, he said."I think that's really what's capped the metals market from moving higher."
The coming week will see a few significant economic data releases, with the ISM Services PMI for August and jobless claims the highlights. "With higher equities and higher dollars, it's simply going to mean lower gold prices. In my view, this recent turnaround in gold was due to the stock market being a little on its heels, and therefore, you have the possibility of some further pullback in the metals should we continue in that environment. I'll bull up longer-term, but it doesn't mean we can't swing and retest $1900 as the downside again.
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