Gold futures fell nearly $20, nearing the $1,700 level today. After the US revealed the number of non-farm payrolls that were higher than expected. This will be a factor supporting the US Federal Reserve (Fed) to accelerate interest rates.
At 21:23 Thai time, the COMEX (Commodity Exchange) gold contract will be delivered in December. It fell $17.70, or 1.03%, to $1,702.90 an ounce.
The US Department of Labor said Non-farm payrolls increased by 263,000 in September. The unemployment rate fell to 3.5 percent from 3.7 percent in August.
Investors view that Higher than expected employment figures And the unemployment rate fell to 3.5% in September, indicating strength in the US labor market. And it will be a factor supporting the Fed to accelerate further interest rate hikes.
Investors added that The Fed will raise interest rates by 0.75% at its monetary policy meeting in November. This will be the fourth consecutive 0.75% interest rate hike after rising 0.75% in June, July and September.
In addition, gold prices were also pressured by the dollar’s appreciation. and the rebound in US government bond yields
A stronger dollar will reduce the attractiveness of gold. by making gold contracts more expensive for holders of other currencies. As the rebound in US Treasury yields increases the opportunity cost of holding gold. Because gold is an asset that does not return in the form of interest.
Meanwhile, investors are keeping an eye on the minutes of the Fed’s September meeting on Oct. 12 and the Consumer Price Index (CPI) on Oct. 13 for any indication of the Fed’s interest rate direction.