Gold futures fell nearly $20, approaching the $1,700 level today. After the United States revealed the number of non-farm payrolls that were higher than expected. This will be a factor that supports the United States Federal Reserve (Fed) to accelerate interest rates.
At 21:23 Thai time, the COMEX (Commodity Exchange) gold contract will be introduced in December. It fell $17.70, or 1.03%, to $1,702.90 an ounce.
The US Labor Department said non-farm payrolls increased by 263,000 in September. The unemployment rate fell to 3.5 per cent from 3.7 per cent in August.
Investors see 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 that supports the Fed to accelerate further increases in interest rates.
Investors added that the Fed will raise interest rates by 0.75% at its monetary policy meeting in November. This will be the fourth 0.75% interest rate rise in a row after 0.75% rises in June, July and September.
In addition, gold prices were also pressured by the appreciation of the dollar. 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 October 12 and the Consumer Price Index (CPI) on October 13 for any indication of the Fed’s interest rate direction.