It seems that the previous rally in gold has struck a bug on its way to the new peaks.
The precious metal marked its first retreat for 2019 on Friday after US employment data for the month of November came out, with expectations expected to be overwhelming. This prevented the glamorous glow of gold as a safe heaven. The price drop threatens the entire weekly rise in the metal, which could be the third consecutive.
The sliding down followed as gold rose to $ 1,300 an ounce earlier in the day for the first time since June. The glare was recovered as investors preferred the "yellow bars" to protect against stock sell-offs.
"The employment data is just monstrous." Tai Wong, chief investment strategist with precious metals at BMO Capital Markets, expressed his astonishment.
Gold futures with delivery in February fell 1% to $ 1282.40 an ounce on the COMEX stock exchange in New York. Gold for the week is down 0.1%. Closing these prices will fix the worst fall in November 9th gold.
However, signs of economic slowdown in the world, which are becoming increasingly apparent due to the trade war between the US and China, have led analysts still not to write off gold altogether.
Source: Bloomberg Finance L.P.
Graphs: Used with permission of Bloomberg Finance L.P.
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