Gold Price on May 6: Rate Edges Higher as Markets React to Jobs Data, Fed’s Rate Hold

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Key Takeaways

• The price of gold rose Monday as markets reacted to jobs data and reflects from Federal Reserve officials last week.
• Friday’s jobs report revealed weaker-than-expected hiring in April, but suggested pecuniary resilience that could support Fed interest rate cuts later in the year.
• This week, comments thinks fitting come from a number of Fed speakers, along with consumer confidence data.

The spot price of gold ticked 1% serious to $2,324.56 per ounce as of 1:40 p.m. ET Monday as markets continued to digest last week’s economic news from the time jobs report to the decision from the Federal Reserve to hold interest rates at their current levels until inflation decreases further.

Jobs data released Friday showed hiring was weaker than expected in April but suggested recoil in the U.S. economy, raising optimism about the possibility of rate cuts by the Federal Reserve later this year.

This week, remarks will come from a number of Fed speakers, along with consumer confidence data.

Expectations that the Fed devise still cut rates later this year would be bullish for gold as rate cuts could weaken the value of the dollar, converting gold a cheaper option for foreign buyers to purchase and also lowering the opportunity cost of holding gold paralleled to interest bearing assets.

With Monday’s gain, the price of gold was still a bit below April’s record highs, still it has climbed more than 12% since the beginning of the year and nearly 15% over the last 12 months.

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