World gold prices fell nearly 1% before closing the trading session on September 5, after plunging more than 2% to 4,364.99 USD/ounce at one point. Selling pressure increased as US job data was better than expected, while the USD surged, putting pressure on the precious metal.
As of about 4 am Vietnam time, when the world market closed, spot gold price decreased by 0.96%, to 4,4303.33 USD/ounce. Meanwhile, December gold futures contracts decreased by 1.38%, to 4,477.20 USD/ounce.
Selling pressure increased after the US jobs report showed stronger-than-expected job growth in August, reinforcing the view that the US labor market remained relatively stable. Gold prices at one point fell more than 2% after the data was released.
The USD rose sharply after the jobs report, thereby putting more pressure on gold prices. As the greenback rose, gold valued in USD became more expensive for investors holding other currencies, reducing the attractiveness of the precious metal.
Before this decline, gold prices had just experienced a strong recovery session when they increased by more than 2% on September 3. However, selling pressure returned in the September 4 session, pulling gold prices away from the 4,500 USD/ounce zone and at times falling below 4,400 USD/ounce.
According to market developments, the 4,400 USD/ounce zone is becoming a noteworthy milestone. The fact that spot gold prices closed at 4,4303.33 USD/ounce shows that the precious metal still maintains above this threshold, despite significant adjustment pressure.
If it maintains the 4,400 USD/ounce zone, gold prices may find support to stabilize again. Conversely, if it loses this mark, selling pressure may increase in the following sessions.
On the precious metals market, spot silver price decreased by 1.13%, to 66.2175 USD/ounce. Platinum price decreased slightly by 0.03%, to 1,822.53 USD/ounce. Meanwhile, palladium price decreased sharply by 2.77%, to 1,400 USD/ounce.
In the short term, the diễn biến of the USD and US economic data will continue to impact gold prices. After a sharp drop, the ability to maintain the 4,400 USD/ounce zone will be an important factor for the next trend of the precious metal.
