WASHINGTON (dpa-AFX) - Gold prices gained more than one percent in the day's trade, amidst a softening in the Dollar's strength as markets reconcile to the Fed's actions and commentary in the recent review. The Fed had raised rates by 75 basis points and made a hawkish warning that rates would be higher going forward.
Markets now await the payroll data from the U.S. to assess whether the current situation of the job market would make or mar the Fed's hawkish forward guidance. Consensus expectation is for the American economy to have added 200 thousand jobs in October versus 263 thousand added in the previous month. The unemployment rate is also seen rising to 3.6 percent from 3.5 percent currently.
The Dollar weakened against major currencies, causing the Dollar Index to drop to 112.28. It is currently at 112.39, lower by 0.48 percent on an overnight basis. The peak for the day was 112.99.
Spot Gold rallied 1.30 percent to trade at $1,650.86 per troy ounce. The day's range has been between $1,628.67 and $1,653.52.
Gold Futures for December settlement strengthened 21.75 points to trade at $1,652.65, up 1.33 percent on an overnight basis. Prices oscillated between $1,631.10 and $1,656.10.
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