Gold Prices Plunge to One-Month Low Despite Weaker U.S. Jobs Data
Despite weaker-than-anticipated U.S. jobs data, gold prices took a significant hit on Friday, dropping to their lowest point in a month. This decline comes after a period of correction following last month’s impressive surge in gold prices.
Investors chose to capitalize on their profits amid easing geopolitical tensions, causing spot gold to decrease by 0.4% to $2,294.30 per ounce as of 1521 GMT. This marks the second consecutive weekly downturn for gold, with a total decrease of 1.8% so far. Similarly, U.S. gold futures experienced a 0.3% dip, reaching $2,302.40.
The price drop was triggered by the release of data showing that U.S. nonfarm payrolls had only grown by 175,000 jobs last month, falling short of economists’ expectations of 243,000. This unexpected data led gold prices to retract from their peak of $2,320.78.
Analysts predict that gold prices will remain range-bound around the $2300 mark as investors await the release of more economic data. The employment figures have reinforced expectations of potential interest rate cuts by the Federal Reserve, which could benefit gold prices in the long run.
Despite this recent setback, gold prices have experienced a significant decline of 5.7% from their peak in April, influenced by geopolitical tensions in the Middle East and central bank purchases.
In response to gold’s movement, silver prices declined by 1.3% to $26.35, while platinum saw a modest gain of 0.1% to $950.76. Palladium also experienced a rise of 0.9% to $943.50, indicating a mixed reaction in the precious metals market.
