- Non -agricultural salary statements in the United States show a constant growth in jobs, but the federal reserve is still in a rush to reduce prices.
- Powell repeats that the inflation path will be “rugged”, which makes the policy now.
- PBOC adds 10 tons of gold in early 2025, while NBP buys Poland 29 tons.
Gold prices fell on Friday, as Greenback fluctuated some of its losses and recovered the returns of US Treasury bonds after the issuance of a job market report in the United States. At the time of writing this report, Xau/USD is trading at $ 2,907, a decrease of 0.11 %.
The American Labor Statistics Office (BLS) issued a salary salary report (NFP) in February, which showed that the economy added more people to the workforce more than January despite the loss of the brand. The same data showed that the unemployment rate remained among the familiar levels with the Federal Reserve Governor Adriana Kogler, saying that employment is still above the tie level.
Kugler added that uncertainty is difficult for all parts of the economy. Earlier, she stated that monetary policy will remain fixed for some time and added that wages are not a source of inflationary pressure.
Recently, Federal Reserve Chairman Jerome Powell reported that the central bank is not in a hurry to decrease prices. Powell added that obtaining inflation to 2 % will be rugged and that the central bank does not need to exaggerate its reaction to readings or two. Powell said the federal reserve is in a good position regarding monetary policy.
When asked about the definitions, Powell said it remains to see whether it would be at risk of inflation.
Reducing geopolitical tensions culminated in alloys as there is some progress in a possible ceasefire agreement between Ukraine and Russia. In the Middle East, US President Trump continued to put pressure on Hamas to release the hostages.
Central banks buy gold
Meanwhile, the Chinese People’s Bank (PBOC) continues to buy gold, according to the World Gold Council (WGC). PBOC has increased its shares by 10 tons in the first two months of 2025. However, the largest buyer was the National Bank of Poland (NBP), whose reserves increased by 29 tons, and its largest purchase since June 2019, when it bought 95 tons.
Daily Digest Market Movers: Gold Advance stopped with climbing our true returns
- Treasury bonds in the United States increases for 10 years, three basis points to 4.318 %.
- The real returns of the United States, as measured by the 10 -year -old securities in the United States (TIPS), which are inversely linked to gold prices, rises three and a half basis points for three and a half to 1.981 %, which is an opposite wind for Xau/USD prices.
- The American NFP came for the month of February in 151K, an improvement of 125 thousand January, but it is less than 160,000 expectations.
- The unemployment rate is up to 4.1 %, a little higher than the expected 4.0 %, indicating some softening in the labor market.
- The ATLANTA FED GDPNOW GDP registered the Q1 2025 by -2.4 %, with an increase in -2.8 % on Wednesday.
- The price of money market traders at 69 basis points of mitigation in 2025, a decrease from 80 basis points on Thursday, through data from The main market station.
- Source: Initial Market Station
Technical expectations Xau/USD: Low gold prices, eye sellers 2900 dollars
Gold prices are still trading sideways, unable to scan $ 2,930 after great progress more than 1.72 % per month. The RSI indicator suggests that the upward trend is still optimistic.
Therefore, the next resistance for Xau/USD will be 2950 dollars, followed by the record of $ 2,954. The latter’s breach exposed the brand of $ 3,000. On the contrary, a decrease of less than 2900 dollars would offer a decrease in February 28 of $ 2,832, followed by a number of $ 2800.
Common Gold questions
Gold played a major role in human history, as it was widely used as a store for value and exchange. Currently, regardless of its brilliance and use of jewelry, the precious metal is widely seen as a safe asset, which means it is considered a good investment during turbulent times. Gold is also widely seen as a hedge against inflation and against currency decline because it does not depend on any specific source or government.
Central banks are the largest gold holders. In their goal to support their currencies at troubled times, central banks tend to diversify their reserves and buy gold to improve the powerful power and currency. High gold reserves can be a source of confidence to the dissolved country. Central banks added 1136 tons of gold worth $ 70 billion to their reserves in 2022, according to the data of the Golden Golden Council. This is the highest annual purchase since the start of the records. Central banks of emerging economies such as China, India and Turkey increase their gold reserves.
Gold has a counter -relationship with the US dollar and the United States Treasury, which is one of the main reserves and safe assets. When the dollar decreases, gold tends to rise, allowing investors and central banks to diversify their assets at turbulent times. Gold is inversely associated with the origins of the risk. The assembly in the stock market weakens the price of gold, while sales in the most dangerous markets tend to prefer precious metal.
The price can move due to a wide range of factors. Geopolitical instability or fears of deep stagnation can escalate the price of gold due to its safe situation. As a lower asset than the return, gold tends to rise with low interest rates, while the high cost of money usually reaches the yellow metal. However, most moves depend on how the US dollar (USD) is behaved as the original is priced in dollars (Xau/USD). The strong dollar tends to maintain the price of gold -controlled gold, while the weakest dollar is likely to increase the price of gold.
