Gold trading alert: slowing the pace of interest rate hikes expected to make the dollar "tumble", bullish sentiment burst gold prices hit a new five-month high

By    5 Dec,2022

Monday (December 5) Asian session, spot gold shocks up, once refreshing nearly five-month high to 1807.83 U.S. dollars per ounce near, although last Friday (December 2) the U.S. non-farm payrolls data performance is strong, the dollar index once rebounded sharply, gold prices also once pulled back to near the 1780 mark, but gold prices soon received low buying support, because the market believes that non-farm payrolls data can not stop The Fed slowed down the pace of interest rate hikes, Fed officials also reiterated the view that slowing down the pace of interest rate hikes, the dollar index on Friday still closed down near the three-and-a-half-month low. At the beginning of the Asian market on Monday, the dollar index extended its decline, once hitting a new low since June 29 to 104.18, continuing to provide gold prices with upward momentum.


Surveys show that nearly 70% of analysts and retail investors tend to be bullish on gold after the market.

This trading day need to pay attention to the U.S. November ISM non-manufacturing PMI data, the market is expected to be weaker than the October performance, slightly favorable to gold prices.

On the geopolitical situation, EU member states reached an agreement on Friday to set a price cap on Russian seaborne crude oil exports, with the G7 and Australia following suit and Russia warning that the move would jeopardize energy security. This also provides safe-haven support to gold prices.

It should be reminded that gold ETF positions have declined slightly in the past two sessions, with the world's largest gold ETF, the SPDR, decreasing by 1.15 tons to 905.49 tons on Friday, still at a near two-and-a-half-year low, suggesting that institutional and mid- to long-term investors remain cautious about the gold market afterwards.

U.S. jobs added more than expected and payroll growth accelerated, but is not expected to affect the Federal Reserve to slow down interest rate hikes

U.S. data released on Friday showed that nonfarm payrolls rose by 263,000 jobs in November, beating forecasts for an increase of 200,000; average hourly earnings rose 0.6% from a year earlier and 5.1% from a year earlier, suggesting employers shrugged off growing concerns about the risk of a recession, but that may not stop the Fed's plans to slow the pace of interest rate hikes starting this month. Some details of the data were somewhat weak, which economists believe may signal that the labor market will show weakness. Household employment fell for the second straight month. About 186,000 people dropped out of the labor market, leaving the unemployment rate unchanged at 3.7%.