Gold futures fell nearly $ 20, approaching the $ 1,700 level today. After the United States revealed higher than expected number of non-farm payrolls. This will be a factor that will help the US Federal Reserve (Fed) accelerate interest rates.
At 21:23 Thai time, the COMEX (Commodity Exchange) gold contract will be delivered in December. It fell $ 17.70, or 1.03%, to $ 1,702.90 an ounce.
The US Department of Labor said Nonfarm payrolls increased by 263,000 in September. The unemployment rate fell to 3.5 percent from 3.7 percent in August.
Investors See It Better-Than-Expected Employment Figures And the unemployment rate fell to 3.5% in September, indicating the strength of the US labor market. And it will be a factor that will help the Fed accelerate further interest rate hikes.
Investors added that The Fed will raise interest rates by 0.75% at its November monetary policy meeting. This will be the fourth consecutive 0.75% interest rate hike after the 0.75% increase in June, July and September.
Furthermore, gold prices were also driven by the appreciation of the dollar. and the rebound in US government bond yields
A stronger dollar will reduce the attractiveness of gold. making gold contracts more expensive for holders of other currencies. As the rebound in US Treasury yields increases the opportunity cost of holding gold. Because gold is an asset that does not return in the form of interest.
Meanwhile, investors are keeping an eye on the minutes of the September Fed meeting on October 12 and the Consumer Price Index (CPI) on October 13 for any indication of the direction of the Fed’s interest rates.
