Gold dipped below $2 300 an ounce, falling the most in almost three years as surprise strength in a key US jobs report dashed hopes that the Federal Reserve will be able to start lowering borrowing costs soon.
After surging to a record above $2 450 an ounce, bullion has traded in a fairly narrow range amid the uncertainty over the Fed’s rate trajectory. Swap traders now no longer fully price in a rate cut before December. “My initial thought is that China, a major driver of the gold rally in the past year, is nowhere near done buying gold,” Hansen said. The pause shows that they are balking at the prospect of paying record-high prices.
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