The gold price can benefit again in view of easing interest rate concerns in the USA. Statements by a Fed central banker are obviously causing a stir. At the same time, investors are now likely to turn their attention to the US labor market data (non-farm payrolls), which are on the agenda for Friday afternoon.
Gold (XAU/USD)
Fed official Waller gives investors hope regarding US interest rates
Christopher Waller, a member of the Board of Governors of the US Federal Reserve, had expressed optimism that inflation was showing signs of easing, thereby signaling a willingness to maintain the current federal funds rate level.
In this context, the CME Group's „Fed Watch Tool“ is also signaling a 49.8 percent chance again that there could be a pause in interest rates at the meeting on September 16. This contrasts with a 50.20 percent probability of a total rate hike of a quarter of a percentage point. The probability for the latter scenario had been 63.2 percent yesterday.
US labor market data in focus – ECB meeting could already cast first shadows
On Friday afternoon, investors should consequently turn their attention to the publication of the official US jobs report (2:30 PM). Following the recent decline (-23,000) from the previous month, economists expect a job gain of 56,000 for the month of August. Another slump in the job market could work in favor of general interest rate expectations.
Monetary policy is likely to remain one of the central topics of discussion in the coming trading week as well. On Thursday (September 10), the European Central Bank will meet to decide on the future level of the key interest rate. The monetary authority might possibly raise the deposit interest rate by a quarter of a percentage point.
