Feb.

Gold futures fell more than 1%, nearing the $2,010 level after the United States revealed strong non-agricultural employment numbers. This raises concerns about the prospect of lowering interest rates by the US Federal Reserve (Fed).

At 12:47 a.m. Thai time, gold contracts on the COMEX (Commodity Exchange) market will be delivered in February. minus $33.50 or 1.64% to $2,012.90/ounce.

In addition, gold prices have been pressured by the strengthening of the dollar. and the rebound in US government bond yields. After the release of non-agricultural employment numbers today

A stronger dollar reduces the attractiveness of gold. By making gold contracts more expensive for holders of other currencies Meanwhile, a rebound in US government bond yields will increase the opportunity cost of holding gold. This is because gold is an asset that has no return in the form of interest.

Investors still put almost 100% of their weight on the forecast. The Fed will announce that interest rates will remain steady at next week’s meeting. But lose weight in predicting that The Fed will cut interest rates at the earliest at its March 2024 meeting. After the United States revealed higher-than-expected non-agricultural employment figures.

The latest CME Group’s FedWatch Tool indicates that investors give a 98.2% weight to the expectation that the Fed will maintain interest rates at 5.25-5.50% at its meeting on Dec. 12-13, 2023, and a 92.2% weight at The Fed will maintain interest rates in January 2024.

However, investors gave only 45.6% weight to the Fed to cut interest rates by 0.25% to 5.00-5.25% at its March 2024 meeting. from the original weight of 55.4% yesterday

In addition, investors weigh 51.7% that the Fed will maintain interest rates at 5.25-5.50% at its March 2024 meeting. from the original weight of only 35.4% yesterday

The US Department of Labor revealed that Non-agricultural employment figures increased by 199,000 jobs in November. This was higher than analysts’ expectations of 180,000 jobs and up from 150,000 jobs in October.

The unemployment rate dropped to 3.7%, lower than analysts’ expectations of 3.9%.

Meanwhile, workers’ average hourly wages rose 4.0% year-on-year in November. In line with analysts’ forecasts.

compared monthly The average hourly wage for workers rose 0.4%, beating analysts’ expectations of 0.3%.

Hourly wages are important data for the Fed to look for signs of inflation.

As for the numbers on the labor market entry rate in the United States, which shows the ratio of the labor force to the total population is at 62.8%.