Gold Prices Plummet Ahead of Crucial US Jobs Data
Gold investors are reeling after a sharp decline in spot gold and gram gold prices. The market has become increasingly focused on Friday's US Non-Farm Payrolls data, which is expected to have a significant impact on interest rates and the value of gold.
The price of spot gold hit a record high last week but has since retreated to its lowest level in three weeks. On September 2, it fell by 9.5% from its peak to $4,139. Gram gold also saw a decline, losing nearly 200 liras in a single day.
The rise in oil prices and inflation concerns in the US have contributed to the decrease in gold's value. The Dollar Index has risen above the 100 level, making it more expensive for investors to hold onto gold, which offers no interest yield.
With the probability of the Fed raising interest rates in September increasing to 67%, markets are on high alert for a strong employment report that could trigger further selling in gold. A weak figure, however, may ease bond yields and pave the way for a recovery in gold.