Gold: an overview of the market situation

Gold prices declined significantly, losing at the same time by more than 2% after the employment data in the U.S. were higher than forecasts of experts, supporting hopes that the recovery in the largest economy in the world is still on track.

According to a report released by the Ministry of Labor, employment in May in the United States rose slightly more than expected by economists., The report said that in May, the number of jobs outside the agricultural sector in the U.S. in May rose by 175 thousand after a downwardly revised increase of 149 thousand jobs in April.

Economists had expected employment to increase by about 163 thousand jobs compared to the addition of 165 thousand jobs, which originally reported for the previous month. Despite the continued growth in the number of jobs, the unemployment rate rose to 7.6% in May from 7.5% in April, reflecting an increase in the labor force.

Also, a report showed the number of jobs in the private sector in the U.S. in May increased by 179 thousand, while the number of jobs in the U.S. manufacturing in May declined by 8 thousand, and in the service sector increased by 176 thousand number of jobs in the budget U.S. in May decreased by 3 thousand, and the federal decreased by 14 thousand

Meanwhile, economists say that the latest report can expedite the completion of the Fed's quantitative easing program.

In addition, it is worth noting that the price of gold affects the situation in India, where the government continues its efforts to curb the import of gold. It was learned that the Reserve Bank of India has extended the restrictions on loans secured by gold coins per customer for all co-operative banks. This came after India announced another increase in its import duty on gold earlier this week.

The data also showed that the stocks in the SPDR Gold Trust fell yesterday by 2.7 tons to 1,007.74, while the outflow resumed, after during the week stocks remained unchanged.

The cost of the August gold futures on COMEX today dropped to 1384.30 dollars an ounce.