Gold prices losing some ground as U.S. economy created 199K jobs in November, unemployment rate drops to 3.7%
(Kitco News) - The gold market is seeing some solid selling pressure as the U.S. economy continues to add more jobs than expected, which is also pushing down the unemployment rate.
Gold's Price Near All-Time Highs, Predicted to Rise Further Over Next 10 Years
Gold is defying usual market trends by rising amidst increasing U.S. Treasury yields and Federal Reserve rate hikes, signaling potential economic disconnects. Geopolitical tensions and a gradual global shift away from the U.S. dollar further bolster gold's value. Central banks are set to buy record amounts of gold in 2023, reinforcing its strength in the market.
Gold Is Back Thanks to Debt, Dollars and Interest Rate
Gold's surge, despite cooling inflation, is attributed to the anticipation of US interest rate cuts in 2024, which lowers gold's opportunity costs and may weaken the dollar. A crucial factor is the increasing US federal debt, with a $1.7 trillion annual fiscal deficit and a rising interest bill, potentially leading to more debt ceiling raises and money printing.