Gold futures fluctuated within a relatively narrow range during today’s US session following the decline of the US Dollar Index after US released important economic data and looking forward to the announcement of the US President Donald Trump to reveal his candidate to head the Federal Reserve.
At 02:56 p.m. GMT gold futures for 16 December delivery rose 0.09% to $1.278.40 an ounce, compared to the opening price at $1.277.30 an ounce, while US Dollar Index declined 0.10% to 94.72 compared to opening at 94.81.
At the same time the first reading of Employment Cost Index was released which indicated a robust growth rate of 0.5%, in line with expectations, compared to Q2 of 0.2%, nonfarm productivity rose to 3.0% in Q3, compared to 1.5% in Q3, surpassing expectations of 2.5%.
Following the release of change in nonfarm payrolls which revealed a surprise acceleration in job creation, as about 235 thousand jobs were added last September and the official report of nonfarm payrolls for October is expected to disclose adding about 311 thousand jobs, US unemployment rate is expected to held steady at its lowest since March 2001 at 4.2%, also US weekly jobless claims declined 5000 claims to 229 thousand, compared to expectations of about 235 thousand.
Now markets focus on Trump’s official announcement of his candidate to head US Federal Reserve, as well as investors are await the statements of the FOMC member and the president of Federal Reserve Bank of New York William Dudley.
It should be noted that the Federal Reserve concluded its last meeting held at the end of October and early November in Washington leaving the US interest rates between 1.00% and 1.25% for the third meeting in a row and emphasizing the need to move forward with tightening monetary policy gradually over the upcoming period.
Furthermore FOMC members commended the robust growth and the increase of US job growth, while reduced the concerns over the negative impact of hurricanes that hit the United States recently, supporting the expectations of raising short-term interest rates for the third time this year to 1.25% and 1.50% at its next meeting in December.