GOLD still soaring despite positive employment figures
Updated
The world gold spot price is around 2,179 USD/ounce, a sharp increase of nearly 19 USD/ounce compared to yesterday's trading session.
The international financial market last night received more positive information about the February employment report in the US. Specifically, according to the US Department of Labor in February 2024, the non-agricultural sector created 275,000 new jobs, much higher than the previous prediction of 198,000 new jobs; higher than the adjusted figure of 229,000 new jobs in January. Only the unemployment rate increased to 3.9%, remaining at 3.7% for the first time in 4 months. The labor force participation rate remained stable at 62.5%.
Average earnings per hour worked in February, a key measure of inflation, decreased slightly with wages rising 4.3%, lower than the previous forecast of 4.4%, an increase of only 0.1 % compared to January.
Thus, the February employment report in the US was quite positive. Although the unemployment rate increased, the number of employed workers remained stable. Normally, positive employment data will help the USD strengthen and gold will decrease in price.
However, this time is different, the conflict in the Red Sea has "heated up" again with the Houthi attack on the True Confidence ship, killing at least 3 crew members on March 6, despite The US naval coalition is there. This has caused the number of ships passing through the Suez Canal area to decrease sharply.
The Houthi attack on commercial ships caused a crisis in the transportation of goods across the Red Sea and it will take several months, or even longer, to overcome. Manufacturing, trading and transportation businesses have to spend higher costs to meet international orders.
This significantly affects the production and business activities of enterprises, as well as the growth of economies. Increased risks have caused investors to continue buying gold to preserve capital and seek profits.
The international financial market last night received more positive information about the February employment report in the US. Specifically, according to the US Department of Labor in February 2024, the non-agricultural sector created 275,000 new jobs, much higher than the previous prediction of 198,000 new jobs; higher than the adjusted figure of 229,000 new jobs in January. Only the unemployment rate increased to 3.9%, remaining at 3.7% for the first time in 4 months. The labor force participation rate remained stable at 62.5%.
Average earnings per hour worked in February, a key measure of inflation, decreased slightly with wages rising 4.3%, lower than the previous forecast of 4.4%, an increase of only 0.1 % compared to January.
Thus, the February employment report in the US was quite positive. Although the unemployment rate increased, the number of employed workers remained stable. Normally, positive employment data will help the USD strengthen and gold will decrease in price.
However, this time is different, the conflict in the Red Sea has "heated up" again with the Houthi attack on the True Confidence ship, killing at least 3 crew members on March 6, despite The US naval coalition is there. This has caused the number of ships passing through the Suez Canal area to decrease sharply.
The Houthi attack on commercial ships caused a crisis in the transportation of goods across the Red Sea and it will take several months, or even longer, to overcome. Manufacturing, trading and transportation businesses have to spend higher costs to meet international orders.
This significantly affects the production and business activities of enterprises, as well as the growth of economies. Increased risks have caused investors to continue buying gold to preserve capital and seek profits.
Note
The price of gold continues to rise to a new peak despite February employment data in the US being quite positive compared to forecasts. Domestic gold also follows the world trend.Note
The US military says it shot down at least 28 drones in the Red Sea on SaturdayUS military and coalition forces shot down at least 28 drones over the Red Sea on Saturday, US Central Command said in a statement.
Note
![🖥 GOLD MARKET ANALYSIS AND COMMENTARY - [March 11 - March 15]](https://s3.tradingview.com/1/1631lvZl_mid.png)
Note
The gold price chart is rising to new levels. The CCI indicator suggests it is overbought, but the daily candle setup remains positive. In the past six sessions, gold has consistently increased, making it hard for short-term sellers to enter the market. There may be a brief consolidation period with support levels at $2,100/oz. and $2,081/oz., but gold is expected to continue rising in the coming weeks.Note
SELL XAUUSD PRICE 2201 - 2199⚡️ ↠↠ Stoploss 2205
→Take Profit 1 2194
↨
→Take Profit 2 2189
BUY XAUUSD PRICE 2134 - 2136⚡️
↠↠ Stoploss 2130
→Take Profit 1 2141
↨
→Take Profit 2 2145
Note
This week saw gold continue to push higher and make a couple of fresh record highs. The precious metal is being driven ever higher on a combination of increased rate cut expectations, Chinese demand, and safe haven buying.Note
Gold is consolidating around $2,180/oz. in early trade and may well move further higher. The daily chart is positive and the fundamental backdrop remains supportive. Again with gold in all-time territory, accurate price predictions can be difficult. Big figure resistance at $2,200/oz. may come into play shortly.Note
The best data point in the CPI report?Lower food price inflation.
At 1.0% YoY, that was the smallest increase we’ve seen since June 2021, down from a peak of 13.5% in August 2022.
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