Closing the trading session on December 8, the world spot gold price decreased by nearly 24 USD to 2,004 USD per ounce. During the session, the price sometimes dropped to 1,995 USD, losing the 2,000 USD mark for the first time since last weekend.
In total for the week, precious metals lost 3.4%. This is the strongest decrease in the past 10 weeks.
World gold prices dropped sharply in the December 8 session.
Prices went down after the US announced faster-than-expected job growth in November. The unemployment rate was also only 3.7%.
This makes investors think that the US Federal Reserve (Fed) will have to wait until May 2024 to start reducing interest rates. Previously, they predicted this would take place in March.
"Gold prices plunged when the US jobs report showed solidity in all aspects. The current price is up to 150 USD lower than the peak earlier this week ," said Tai Wong - precious metals trader in New York - identify.
In contrast, the Dollar Index - which measures the greenback's strength against a basket of major currencies - increased 0.7% this week. This makes gold more expensive for buyers outside the US. Yields on 10-year US government bonds also increased from a 3-month low.
Investors are currently waiting for the Fed's interest rate forecast for next year, which will be announced at the policy meeting on December 12-13. "As price movements reflect the market's expectations of policy easing, both gold and silver will face difficult times ahead," said Ole Hansen - Director of Monetary Strategy of Saxo Bank.
On the physical market, gold traders in India had to drastically reduce prices this week. Because gold prices are at a 7-month peak, affecting purchasing power.
Spot silver price yesterday decreased 3.3% to 23 USD an ounce. This is the worst week for this precious metal since October 2022.
Palladium fell 2.44% to $945 an ounce. This week, palladium prices also went down.
Ha Thu (according to Reuters)
