Gold Prices Rebound but Momentum Fades Amid Strong US Job Market
Gold prices rebounded last week after a volatile trading period, but their upward momentum was short-lived. The precious metal's recovery was fueled by bottom-fishing buying and falling US bond yields, which helped gold recover from its slide below $4,000 per ounce earlier in the week.
The US job market remains strong, with the number of Americans applying for unemployment benefits decreasing to 187,000 - a level not seen in decades. This has given the Federal Reserve reason to continue maintaining high interest rates to curb inflation, which has put pressure on gold prices.
Despite this, individual investors remain optimistic about gold's prospects, with 59% of those polled believing that prices will rise next week. However, Wall Street experts are more pessimistic, with only 22% predicting a price increase and 39% expecting prices to fall.