Gold and silver prices recovered from earlier declines on weak U.S. employment data and expectations of a possible Federal Reserve rate cut. Such factors have renewed investor interest in precious metals, Bloomberg reported.
Gold bullion was trading around $3,990 an ounce on Nov. 7, paring losses from the previous session and ending the day largely unchanged.
According to data from Challenger, Gray & Christmas Inc., the U.S. saw its biggest job loss in more than two decades in October. Such results strengthen expectations of further reduction of Fed rates, which traditionally supports demand for precious metals.
At the same time, American officials express different positions on monetary policy. Chicago Fed President Austan Goolsby noted that the lack of official statistics due to the partial shutdown of the US government “even more worrying” him in the context of future decisions on rates.
It is worth noting that since the beginning of the year, gold has risen in price by more than 50% and is showing the best dynamics since 1979. The increase in value is facilitated by active investments in exchange-traded funds backed by gold bars, as well as significant purchases by central banks.
Among other precious metals, silver is growing for the third day in a row after the US government included it in the list of critically important minerals. Platinum and palladium are also showing positive dynamics.
As a reminder, last month global gold and silver prices set new historical records amid economic uncertainty and an expected decrease in interest rates in the US.
