Gold reached a new historical maximum on Wednesday, consolidating its profits above the key level of $ 3,500, driven by a weak work data in the United States that reinforced the expectations of a federal reserve fees this month.
Cash gold earned 0.8%, at 3,562.44 per ounce at $ 19:34, after reaching a historical maximum of 3,578.50 earlier in the session. Gold futures in the United States for delivery in December improved 1.2%, at 3,635.50 dollars.
Employment offers, an indicator of labor demand, lowered 176,000 to 7,181 million on July, reported the Labor Statistics Office of the Department of Labor in its vacancies and work rotation survey report, or Jolts.
After the data, the operators increased the probability that the US Central Bank cuts the rates at 25 basic points at its meeting from September 16 and 17 to 98%, compared to the previous 92%, according to the CME Group Fedwatch tool.
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The governor of the Federal Reserve, Christopher Waller, reiterated on Wednesday his call to a decline in interest rates in September, given the weakening of the labor market, and said that the speed with which the Central Bank cut later will depend on what happens later in the economy.
In addition to the uncertainty of the market and the possible commercial tensions, the government of President Donald Trump said that he will ask the Supreme Court a rapid ruling on the tariffs that an appeal court considered illegal last week.
“The feat cuts begin to seem practically assured, but now questions arise about whether there will be more. Lower types would stimulate economic activity in the United States, in addition to further weakening the dollar (…) providing a strong wind of tail to gold,” said independent analyst Ross Norman.
Trump has been exerting relentless pressure on the Fed to cut the rates and spoke in public about the possible dismissal of the entity’s president, Jerome Powell.
In addition, last month he tried to say goodbye to Governor Lisa Cook, triggering a critical legal challenge about the ability of the Fed to function without political interference.
The expectations of rate cuts and concerns about the independence of the Fed have weighed over the dollar, which has lost more than 9% since the beginning of the year, lowering the ingot for foreign buyers.
In other precious metals, money in cash rose 1.1%, to $ 41,34, after touching its maximum since September 2011; The platinum added 2.2%, to 1,434.17; And the paladium improved 1.8%, at 1,155.05.
With Reuters information
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