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Strong U.S. Job Market and a Rise in Gold Prices

INVESTINGStrong U.S. Job Market and a Rise in Gold Prices

The U.S. job market has shown itself in a very good light, similarly to the Canadian market. In the background, gold prices are once again on the rise.

U.S. Job Market

The Friday data from the U.S. job market looked promising. There were positive readings leading up to it—if available—created by job placements and a decrease in unemployment benefits claims in the last residence. On Friday, we saw a decrease in the unemployment rate from 4.2% to 4.1%. This disruption occurred in the non-farm payroll sector. As a result of this data, it was confirmed that it is dependent on the currency. In the case of EURPLN, we went back below the 1.0250 level. The question arises whether there will be a signal to align with the euro communication. Even weaker results in the University of Michigan Report did not spoil the euphoria for investors.

Gold Prices Increase

The latest study was conducted for the healthcare market. This precious metal is far from the peaks that were before the U.S. elections. It remains a fact that on Friday, gold was the most expensive since the first half of December. Special concerns about price hikes worldwide exist. It is believed that the amplifier is not available in the event of the application of central banks, which would constitute a weakening force by this metal. However, it is worth remembering that investment bank Goldman Sachs predicts a level of 3000 USD per ounce by 2025, which would mean a further 10% increase.

Improvement in Canada as Well

Good job market data is not only about the U.S. but also Canada. There, the rate, instead of the appropriate expectations from 6.8% to 6.8%, fell to 6.7%. As you can see, the neighboring job market is performing better than the political threat that is to occur. The question is whether it can help in straightforward, accelerated elections. In Canada, there were 90.9 thousand jobs added in December, a result above expectations. It’s noteworthy that 57.5 thousand of these jobs are full-time. On Friday, the Canadian dollar rate rose from 2.87 PLN to almost 2.90 PLN.

Maciej Przygórzewski – Chief Analyst at InternetowyKantor.pl

Source: https://managerplus.pl/strong-job-market-in-usa-supports-dollar-gold-gains-in-value-26221

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