Gold prices "heatedly" increase, buyers make big profits in just one week

At the end of the trading week in early November, the world gold price listed on Kitco was at 1,818.0 USD/oz. Buyers officially made a big profit thanks to a difference of up to 38 USD/ounce compared to the beginning of the week.

Gold prices increased dramatically last week thanks to positive signals from the monetary policies of the three major banks in the world and the October employment data for growth in the US.

The European Central Bank (ECB) just held a press conference after the official meeting held a few days earlier. The US Federal Reserve (Fed) and the Bank of England also announced a consensus on current monetary policy. All three major central banks have pledged not to raise interest rates and maintain monetary policy at an appropriate level.

Accordingly, the Bank of England issued its latest monetary policy after the meeting of the Monetary Policy Committee held this Tuesday. This statement is considered consistent with both the Fed and the ECB.

The Committee assessed that the current stance of monetary policy is still appropriate. The bank interest rate was agreed to remain at 0.1%. The committee voted overwhelmingly to allow the Bank of England to continue its existing UK government bond purchase program.

In addition, the US Federal Reserve issued a statement after the FOMC meeting on Wednesday. Regarding the current Fed rate that will determine interest rates across the US, they said: "The Committee has decided to keep the target range for the federal funds rate at 0 - 0.25%. We hope this rate will continue until the labor market grows and inflation adjusts to 2%".

In the latest developments, the US Bureau of Labor Statistics said that 531,000 jobs were created in October. This figure is even higher than economists' expectations with about 425,000 new jobs.

The US economy not only creates more jobs than expected but also has the unemployment rate adjusted down to 4.6%. This is down from 4.8% in September and better than economists' expectations at 4.7%. In addition, the labor participation rate decreased to 61.6%. Before the pandemic, this rate was 62.8%.

According to some analysts, while important data is moving positively, gold prices may still react to fluctuations in wage inflation. The report said that the average hourly wage in October increased by 11 cents, equivalent to 0.4% to 30.96 USD.

"Over the past 12 months, average hourly earnings have increased by 4.9%," the report said. According to analysts, the latest employment report is satisfying the majority of investors.

After the information on the labor market was published, the world gold price opened GAP and fell sharply at the beginning of the session on November 6. The massive cash flow that took the lead immediately supported gold prices to the 1,818 USD/ounce range, officially breaking the resistance level of 1,800 USD.