gold Stocks Surge as US Labor Report Fuels Rate Cut Bets
Jakarta, Indonesia – Indonesian-listed gold stocks are continuing an upward trend, bolstered by record-high global gold prices driven by a weaker-than-expected US Labor report and increasing expectations of a Federal Reserve interest rate cut in September. The report, released Friday, showed employment growth of just 22,000 in august – significantly below economists’ projections.According to a screening of shares utilizing trend-following analysis, five gold stocks are currently exhibiting a “Strong Bullish” phase, presenting a potential opportunity for investors.
World gold prices reached a new trading record on Friday as the US Labor Report strengthened expectations for a Fed rate cut. Gold bars, alongside other metal prices, are poised for their third consecutive weekly increase, benefiting from a weakening dollar and growing confidence in a September rate reduction. Increased demand for safe-haven assets, triggered by concerns over swelling government debt in developed countries and uncertainty surrounding US import tariffs and the Fed’s independence, also contributed to the price surge.
Several Fed officials have signaled openness to cutting interest rates to address cooling signs in the US labor market. The CME Fedwatch Tool currently estimates a near 100% probability of a 25 basis point rate cut at the September 16-17 meeting.
Disclaimer: This article is a journalistic product from CNBC Indonesia Research.This analysis is not intended to encourage readers to buy, hold, or sell related investment products or sectors. The decision rests solely with the reader, and we are not responsible for any resulting losses or profits.
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