[New York Gold Prices] Rise Over 1% on Weak Consumer Data and Sluggish Private Employment

(New York=Yonhap Infomax) Jin Woo Choi – International gold prices climbed higher.

Weaker-than-expected U.S. employment data and disappointing retail sales figures have fueled expectations that the Federal Reserve (Fed) may cut its policy rate in December. Gold, which does not yield interest, tends to be favored in low-rate environments.

As of 12:30 p.m. local time on the 25th, gold futures for February delivery (GCZ5) on the COMEX division of the Chicago Mercantile Exchange (CME) were trading at $4,187.70 per troy ounce, up $56.90, or 1.38%, from the previous settlement price of $4,130.80.

According to private employment data provider ADP, for the four weeks ending on the 8th of this month, preliminary U.S. private sector employment fell by an average of 13,500 jobs per week.

U.S. retail sales for September, seasonally adjusted, totaled $733.3 billion, a 0.2% increase from the previous month but below the forecast of a 0.4% rise.

Reports that Kevin Hassett, Chairman of the White House National Economic Council (NEC), is a leading candidate for the next Fed Chair also added upward pressure to gold prices.

Peter Grant, Chief Metals Strategist at Jena Metals, commented, "Recent dovish remarks from the Fed have revived expectations for a December rate cut, and today's data appears to reinforce those expectations."

jwchoi@yna.co.kr

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