The gold price rose for the third day in a row on Thursday and reached the highest level in four weeks.
On the London Stock Exchange in the afternoon, 2,676 dollars (2,602 euros) was paid for one troy ounce (about 31.1 grams), about 14 dollars more than the day before. The price for the precious metal is now higher than it has been since mid-December.
As trading progresses, investor interest is increasingly focused on key US economic data, expected on Friday. On the agenda is the US government’s labor market report for December. This is receiving a lot of attention in the market because the labor market plays an important role in the Fed’s monetary policy. If the data shows that the labor market is slowing, it could increase speculation that interest rates will fall.
The minutes of the US Federal Reserve’s most recent interest rate meeting failed to depress gold prices. The transcript of the December interest rate decision published the evening before showed even greater reluctance on the part of the US monetary authorities regarding a further rate cut. For example, the prospect of higher yields on government bonds typically dampens demand for gold, which does not generate interest. With the current increase, the gold price continues to move towards a record high, which was reached at $2,790 at the end of October.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
