Gold rose during the Asian markets session on Friday because of caution before nonfarm payrolls and average hourly earnings data in the US which are expected to be positive and lead to US interest rates hike in June.
Overnight, gold prices sank to a six-week low on Thursday, as investors’ optimism for a June rate hike rose to its highest level, after the Federal Reserve left its benchmark rate unchanged but downplayed slower first-quarter economic growth. In addition, the uncertainty surrounding the outcome of the French presidential election eased, following a strong performance by pro-EU candidate Emmanuel Macron in a TV presidential debate against Marine Le Pen ahead of the final vote on Sunday.
Meanwhile, investors’ expectations of a June rate hike hit its highest level, after the Federal Reserve released a somewhat hawkish statement on Wednesday. The U.S. central bank left its key benchmark rate unchanged but downplayed the significance of slower first quarter economic activity.
Source: Investing
Junior Trader Ivan Ivanov
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