Gold prices are rising to US data that increases expectations of interest reductions

Gold prices rose after the weaker US economic data reinforced the speculation that the Federal Reserve will reduce interest rates at least twice this year. Skin prices jumped to approach $ 3.385 an ounce, just $ 115 for the record recorded in April. The state of contraction in the activity of the US service sector and the slowdown in employment, traders, forced interests to facilitate monetary policy to prevent stagnation. Low interest rates often form gold support, which does not produce yields. Worldwide trading tensions that increase the attraction of safe haven at the same time have been deteriorating US relations with China and the European Union, as President Trump has doubled the customs duties on steel and aluminum to 50%, and at night on social media that “it is very difficult to reach a deal” with its Chinese eknie Xi Jinping. The increasing trade war has strengthened the attraction of gold as a safe haven, at a time when investors avoid the assets exposed to mutual retaliation. Gold fell to a previous recruitment report on Tuesday showing an increase in the number of vacancies, which strengthened the optimism about the durability of the US economy. However, prices returned as soon as the trading on the Shanghai Gold Exchange began Wednesday morning, with the support of purchases when prices fell. Gold has risen by 30% since the beginning of the year, alloys have increased by 30% since the beginning of this year. Central banks are also a major driving force, with the expectation of the ongoing wave of purchase led by these institutions in the light of geopolitical tension and fear of excessive exposure to the dollar. The immediate gold price rose 0.6% to $ 3,373,26 per ounce at 15:24 o’clock New York. On the other hand, the Bloomberg index of the dollar dropped 0.4%. The prices of silver and Albadium dropped, while platinum rose. Investors are looking forward to the US job market indicators, including the May Jobs report scheduled for Friday, which could contribute to the directing of monetary policy expectations for the Federal Reserve.