Gold is preparing to spend its smoothest week since the beginning of April.
Spot gold trades at 1977 dollars per ounce. According to the calculations made by applying the ounce gold and the mid-bank Dollar/TL rate, gram gold reached a new record level with 1,332 TL.
The precious metal was flat on Friday after gaining 1.7 percent this week. Investors reduced their pricing for further tightening after the data flow improved in controlling inflation.
While US manufacturing data released on Thursday pointed to a decline in prices and new orders, experts predict a slowdown in the hiring rate in the US when nonfarm payrolls information is released.
Stephen Innes, Managing Partner of SPI Asset Management, noted that if softer employment information comes in on Friday, the information will not be enough to lower global growth expectations and this will be interpreted negatively for the dollar against the currencies of developing countries.
Innes added that if weak employment data comes in, it will be positive for gold and the precious metal will become the best investment option.
The pledge to increase the US debt limit is being priced in that raising the upper end of government spending could increase the risks of an economic downturn that would help bolster spot gold.
It is stated that this situation may reduce the possibility of the Fed to continue tightening and have a positive effect on gold. The memorandum was adopted by the Senate on Thursday, after being passed in the House of Representatives.
Source: Bloomberg HT