The price of gold decreased on Friday when investors took profits after the previous trading day’s rally. However, Speculations on new US stimulus measures made gold more attractive as an inflation hedge, and the price of gold rose for the first time in four weeks.e
At the time closing of the US market, spot gold closed at US$1838.51 per ounce, down US$1.99 or 0.09%. The highest intraday hit US$1848.09 per ounce and the lowest hit US$1830.09 per ounce.
Gold prices have seen profit-taking after four consecutive days of a strong rebound. This level is seen as a major obstacle because it has been a support level for the past two months: Montreal Said Tai Wong, director of bank fundamentals and precious metal derivatives trading.
”Gold’s response to the apparently weak U.S. non-farm payroll report is a sell-off rather than a rise, suggesting that bargain-hunting buyers may be temporarily satisfied,” he added, adding that there may be some mild but stable “planned sell-offs in ETF “.
The November non-agricultural employment growth in the United States was the lowest in six months, which is likely to boost expectations of fiscal stimulus. After the release of non-agricultural data, gold rose to a high, but then fell in shock.
The latest U.S. non-agricultural employment report shows that the U.S. non-agricultural employment-population increased by only 245,000 in November, far below the expected increase of 469,000; the unemployment rate in November fell to 6.7%, the expected 6.8%, and the previous value of 6.9%.