Gold: an overview of the market situation

Gold prices have stabilized today , little departing from the one-month high , as many experts have continued to analyze the weak U.S. employment data , which led to a review views on reducing the volume of asset purchases by the Federal Reserve System.

Earlier today, the price reached a high of $ 1,254.05 an ounce - the highest since Dec. 12 , as some have begun to interpret the data on employment in favor of the fact that the Fed will keep interest rates low for longer than expected .

Recall that in December, the number of non-farm payrolls increased by only 74 thousand , compared with an increase of 241 thousand in the previous month , which was revised up from 203 thousand add that this was the lowest monthly increase in within three years.

In addition, the Department of Labor reported that the unemployment rate fell to 6.7 % from 7% , although this decline was largely the result of reducing the number of workforce.

Economists had expected the number of people employed in December to increase by 194 thousand and the unemployment rate will remain unchanged - at around 7.0%.

"Macroeconomic factors and the dollar is still the driving forces for gold, and it is also evident from the price movement on Friday . Gold is still reacting to the U.S. data , more than any other tools , " the analyst said VTB Capital.

"Prices may continue to rise to the level of $ 1,267 . The U.S. stock market began reporting season , so in the case of strong frustration in the financial results of companies money can return to the gold market , "- said an investment analyst at Phillip Futures Joyce Liu . " However, the overall macroeconomic forecasts remain unfavorable for gold , especially given the rise in bond yields and good prospects for the dollar. The price of gold will be supported on this week, but the rally may soon be over . "

It should also be noted that the high demand in China began to decrease, however, the ">Data released Friday showed that hedge funds and money managers increased their net long positions in gold futures and options in the second week in a row.

Cost February gold futures on the COMEX today rose to $ 1248.80 per ounce.