Gold price up to 2-month high, despite NFP beating expectations
Gold prices were up for a second consecutive session on Friday, despite data from the U.S. showing that payrolls had beat expectations.
Figures from the Labour Department showed that Non-farm payrolls had risen by 531,000 in October, with the unemployment rate falling to 4.6%.
It was initially forecasted that payrolls would rise by 450,000 last month, after coming in at 312,000 in September.
The better than expected increase sent XAUUSD to an intraday high of $1,815, after starting the session trading at $1,790.
In addition to this, the benchmark S&P 500 also rallied to a new record high to end the week.
EURUSD falls as Eurozone retail sales disappoint
EURUSD fell on Friday, as it was shown that retail sales in the Eurozone had missed expectations.
Data released today reported that retail sales within the European economic area were down by 0.3% month-on-month in September.
This comes after sales were expected to rise by 0.3% within the same period, however rose, as a result of the summer surge in COVID-19 cases around the continent.
|💡 Are slowing retail sales a sign for slower economic growth?|
The eurozone’s gross domestic product expanded 2.2% in the third quarter compared with the previous-three month period. Economists expect economic growth to slow sharply in the last quarter of 2021 as the effect from the pandemic-related reopening fades and widespread supply chain strains hit the region’s industry.
As a result of the report, EURUSD fell to an intraday low of 1.1513, its lowest level since August 7th last year.
Germany’s DAX 30 closed 0.15% higher on the news.
OPEC+ under pressure from U.S. to hike output
A day after OPEC+ confirmed they would be keeping output levels as previously agreed, U.S. officials condemned the cartel for this decision.
The Energy Secretary in the United States, Jennifer Granholm today stated that, “The message is we need to increase supply at this moment so that people will not be hurt during the winter months”.
|💡 What can the U.S. do?|
In the US, consumers are looking at higher heating bills this winter, while across the nation, the price of gasoline is up by at least $1.30 per gallon compared to last year and growing.
Analysts say the squeeze on US consumers could prompt the US to tap emergency oil stockpiles.
Speaking after OPEC and its allies, which include Russia, opted to keep increasing output by 400,000 bpd, she said that, “During Covid, it was down — they backed off because demand was not there because people were staying home, we know that. Now that things are back up, the production should be meeting that [demand], there have been rigs that have been added but not fully”.
WTI Crude rose on the comments, climbing $2, hitting an intraday high of $81.97.
“The fundamental law of investing is the uncertainty of the future.”– Peter Bernstein