The U.S. dollar's rally and the sharp rise in U.S. Treasury yields on Friday, triggered by robust jobs data, are key factors in the change in gold prices. This data aligns with the stance of U.S. monetary policy hawks, who oppose U.S. interest rate cuts by the Federal Reserve. Historically, the speech and Q&A during the Powell conference provides more insight into the longer-term possibility of interest rate movements by the Federal Reserve. In simpler terms, the interest rate was increased by 5.25% and has remained at 5.5% since July 26th, 2023. A lower supply of gold, a precious and limited resource, will inevitably favor higher gold prices in the future, a factor that investors and gold enthusiasts should keep a close eye on.

Source: Forbes June 10, 2024 16:38 UTC