World gold prices continued to fall in the first trading session of the week, extending the downward trend after losing 1% in the previous session. The precious metal is under pressure as the market re-evaluates its price outlook after positive US jobs data.
As of 2:43 PM on September 7th Vietnam time, spot gold price decreased by 0.85%, to 4,392.82 USD/ounce. Meanwhile, December gold futures price decreased by 0.84%, to 4,439.21 USD/ounce.
Gold's decline continued the last trading session of the week, as better-than-expected US jobs data increased expectations that the US Federal Reserve (Fed) could raise interest rates in September. This put pressure on gold – a non-performing asset.
Gold prices are currently still fluctuating around the 4,400 USD/ounce mark. The fact that the precious metal has not been able to return above this threshold shows that selling pressure is still present after the sharp drop at the end of the week.
In the last trading session of the week, gold prices at one point fell sharply after the US jobs data was released. The market is currently continuing to monitor price movements around the 4,400 USD/ounce mark to assess the recovery or continued adjustment of the precious metal.
At the present time, the 4,400 USD/ounce mark continues to be a noteworthy price range. If gold recovers this threshold, buying power may be strengthened. Conversely, maintaining below the 4,400 USD/ounce mark may cause selling pressure to continue to dominate price movements.
Traders currently value 58.4% of the Fed's ability to raise interest rates at the meeting on September 15-16, according to CME's FedWatch tool, higher than the 55% before the jobs data was released.
Higher interest rates often reduce the attractiveness of unprofitable gold bars, thereby creating more pressure on the price of precious metals.
On the precious metals market, silver price was at 65.55 USD/ounce, down 1.01%. Platinum price was at 1,809.60 USD/ounce, down 0.71%. Meanwhile, palladium price was at 1,400.25 USD/ounce, down 0.26%.
