A negative U.S. economic report drove up gold prices

A depressing U.S. economic report was the main factor driving yesterday’s 0.18% increase in gold prices to settle at 61,020. Some Federal Reserve Board members who worry that the U.S. economy is overheating may find their worries reduced as a result of this research.

Non-farm payrolls grew by 150,000 in October, according to the U.S. employment status report, which was less than the 170,000 gain that the market had anticipated. In September’s report, there was a revised rise of 297,000 non-farm jobs.

The October jobs report supports the opinions of U.S. monetary policy doves, who favour stopping interest rate increases by the Federal Reserve. The employment data was released, and as a result, the U.S. dollar index declined and U.S. Treasury yields decreased. A net addition of 77 metric tons was made to the gold reserves of central banks worldwide in September, as they also kept adding to them.

Conversely, a fourth week of discounts were extended by physical gold dealers in India as a result of increasing domestic prices, which discouraged customers from buying. Premiums over global market prices, which range from $25 to $40 per ounce, barely changed from the previous week, reflecting the muted demand for gold in China.

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