Gold Prices Decline
Global gold prices have declined during current trading on Monday,
following sharp selling in the previous session.
This drop is driven by stronger-than-expected U.S. job data.
Investors are now anticipating the upcoming U.S. Federal Reserve meeting this week.
Contents:
Gold:
Gold prices fell by 3.5% on Friday, the largest drop since November 2020.
This decline followed the release of U.S. job reports and Chinese data indicating that the world’s largest gold consumer ceased its purchases in May after 18 consecutive months of buying.
The People’s Bank of China announced today that its gold reserves remained unchanged at the end of May.
This follows purchases of only 60,000 ounces in April and 160,000 ounces in March.
Bitcoin:
Bitcoin’s Continued Rise:
Significant investments from major shareholders and institutional investors are supporting the prices of Bitcoin and Ethereum, leading to an overall market recovery.
Interestingly, some stocks have surged tenfold alongside the rise in Bitcoin and the cryptocurrency market.
There is a rapid increase in the total balances held by major Bitcoin holders and top investors.
Over the past 30 days, major Bitcoin holders have accumulated 70,000 Bitcoins,
the highest increase since late April.
Daily inflows from new significant Bitcoin investors have reached $1 billion,
comparable to the accumulation period in 2020 when Bitcoin surged from $10,000 to $70,000.
Additionally, purchases by U.S. spot exchange-traded funds (ETFs) have increased,
with total holdings rising from 819,000 Bitcoins on May 1 to 859,000 currently.
Wages:
Wage Growth in the United States:
The United States saw job growth in May, with wages increasing at a faster pace,
prompting traders to reconsider expectations for interest rate cuts by the Federal Reserve.
A report from the Bureau of Labor Statistics on Friday indicated that non-farm payrolls rose by 272,000 jobs last month, surpassing economists’ forecasts.
Average hourly earnings increased by 0.4% compared to April and by 4.1% over the past year,
which is higher than the previous report.
However, the unemployment rate, derived from a separate survey, rose to 4% from 3.9%,
marking the highest level recorded in over two years.
Gold Prices Decline