Gold Prices Plummet Amid US Jobs Report Surprise
The past week saw volatile trading in gold prices as investors digested mixed signals from the US economy and Federal Reserve.
Gold initially suffered pressure on Sunday evening, opening at $4,439.15 per ounce due to lingering concerns over inflation and a strong US jobs report that suggested the Fed may continue to raise interest rates in September.
However, gold prices began to recover on Wednesday after weaker-than-expected private sector jobs data cooled US bond yields and reduced expectations of an upcoming interest rate hike.
The upward momentum carried over into Thursday, with spot gold prices reaching a weekly high at $4,511.08 per ounce.
But this recovery was short-lived, as the release of the US's August non-farm payroll report showed a stronger-than-expected economy and pushed the USD and short-term US Treasury bond yields back up.
Gold prices subsequently fell sharply, but partially recovered from the decline by Friday afternoon, closing at $4,432.33 per ounce.