After the price rises to historical records earlier this week, gold was trading at a price of $ 2,74 with a 1.48% rise earlier today. With the positive unemployment data announced in the USA, the gold that coveted $ 2,100, fell by 2% at the time of writing, and fell to $ 2,21.
What Triggered the Retreat?
The US Department of Labor’s non-farm unemployment report states that more than 1.7 million people have jobs in the US. Economists expected this figure to be 1.6 million.
“The non-farm unemployment report confirmed that economic data was stagnating and the expected third-quarter recovery was not materializing,” said Edward Moya, senior market analyst at OANDA. The labor market did not deteriorate and risky assets initially rose after the upside surprise in unemployment numbers. Many traders expected possible negative pressure, but this pessimism will only pass in the next month. “This report will include most of the slowdown caused by the resurgence of the virus in the states with the second wave.”
While fears of uncertainty around the global economy and rising central bank debt made inflation hedging operations more attractive, traders were turning to gold. Indeed, recent investor inflows to gold- backed ETFs have caused such funds to hold more gold than the German government’s and stand behind the US reserves, as reported by Bloomberg.
As for Bitcoin, the price of the digital asset is trading at $ 11,526, down 2% at the time of writing, after hitting close to $ 12,000 late Thursday.