© Simply 3 Capital
© Simply 3 Capital
Gold is trading above $2175 an ounce after the latest jobs report reinforced the view that US Fed interest rate cuts may come as soon as June.
Traders now see a nearly 60% chance of a 25bps interest reduction by the FED in June. Previously, Fed Chair Powell and several ECB members hinted that monetary easing would likely begin this year, raising the appeal of a non-yielding asset.
This is on back of US unemployment rate rose to a two-year high of 3.9%. Also, wage growth slowed more than anticipated, indicating a cooling labour market.
Since, market is anticpating that interest rate would be cut by Fed in June, Gold is having a strong upmove. Time will tell if US Fed will change its commentary or not and deliver on the rate cut expectations or it is just managing public perceptions since this 2024 also happens to be election year in US. Mind you elections are due in November beginig in US this Year.
# Disclaimer- Please note that S3 Insights has been created with the primary goal of providing its readers with up-to-date information on the Financial Markets. Its purpose is to share knowledge about Financial products, insights from Market experts, recent developments in the financial industry, and business-related information about companies. It is important to emphasize that the S3 Insights should not be interpreted as providing any form of advice. It does not intend to recommend or endorse the buying, selling, or trading of any financial product. S3 Insights is purely educational in nature.