Stocks Decline as Weak Jobs Data Fuel Rate Cut Expectations
NEW YORK – U.S. stocks fell and Treasury yields declined Wednesday as a slowdown in the labor market intensified expectations for interest rate cuts by the Federal Reserve. Spot gold prices held steady near $4,000 per ounce amid the shifting economic outlook.
Recent U.S. jobs data revealed a notable slowdown, prompting speculation that the Federal Reserve may respond with monetary easing. Several U.S. financial officials have weighed in on the possibility of rate cuts. As of 2:00 pm New York time, the spot price of gold was $3,987.48 per ounce, up $7.91 (0.2%) from the previous day. December gold futures on the New York Mercantile Exchange (COMEX) closed at $3,991, down $1.9 (less than 0.1%).
Analysts at Macquarie Group predict a potential decline in gold prices over the next year, citing a possible global economic recovery, the end of central bank easing cycles, sustained high real interest rates, and easing tensions between the U.S. and China. Despite this outlook, gold is on track to be the most expensive it has been on an annual basis since 1979.
Investment in gold is currently supported by expectations of lower U.S. interest rates, inflows into gold-backed exchange-traded funds (ETFs), and purchases by central banks.
Elsewhere,the dollar fell as the jobs outlook soured,and oil prices declined as traders assessed a Saudi price cut and supply concerns.
