yesterday settled up by 1.13% at 47524 as a surprise slowdown in U.S. jobs growth in August drove the dollar lower, casting doubts on the Federal Reserve’s tapering timeline. U.S. job growth came in well below expectations in August amid a jump in COVID-19 infections.
Fed Chair Jerome Powell said that if job growth continued, the Fed could start cutting asset purchases this year, but would remain cautious about raising interest rates. The U.S. Federal Reserve is likely to announce the tapering of its asset purchases in November and begin the process a month later, former Federal Reserve official Dennis Lockhart said. Waiting until November will give policymakers more data on the labor market’s recovery and economic growth, Lockhart told. But Lockhart, president of the Atlanta Fed from 2007 to 2017, warned “a particularly bad next two months” could postpone this timeline.
The Fed’s September meeting will be the first since the Jackson Hole symposium where Chairman Jerome Powell only said tapering could be “this year.” The Perth Mint's sales of gold products in August fell about 24% to their lowest level since June 2020. Sales of gold coins and minted bars in August fell to 53,976 ounces from 70,658 ounces in July and were down 20% from a year earlier.
Technically market is under short covering as the market has witnessed a drop in open interest by -8.9% to settled at 10178 while prices up 533 rupees, now Gold is getting support at 47174 and below same could see a test of 46823 levels, and resistance is now likely to be seen at 47737, a move above could see prices testing 47949.
# Gold trading range for the day is 46823-47949.
# Gold advanced as a surprise slowdown in U.S. jobs growth in August drove the dollar lower, casting doubts on the Federal Reserve’s tapering timeline.
# U.S. job growth came in well below expectations in August amid a jump in COVID-19 infections.
# Fed likely to announce taper in November, former Fed official says
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