World gold prices recorded the first weekly decline in a month.

Gold bars are displayed at a store of Tanaka Kikinzoku Jewelry Company in Tokyo, Japan. (Photo: AFP/VNA)

Gold prices fell in the trading session on January 5 and recorded the first weekly decline in a month, after the non- farm payrolls report was better than expected.

Closing this session, the price of gold futures on the COMEX floor of the New York market (USA) decreased by 20 US cents, less than 0.1%, to 2,049.80 USD/ounce.

For the week, gold prices fell nearly 1.1% after three consecutive weeks of gains, according to Dow Jones Market Data.

Gold prices fell shortly after the US employment data was released. Accordingly, the US economy created 216,000 new jobs in December 2023, more than expected.

The decline was then somewhat limited after data from the Institute for Supply Management (ISM) survey showed that the services sector purchasing managers' index (PMI) fell to 50.6% from 52.7% last month.

According to data released by the US Department of Labor on January 5, employers in this country hired more workers than expected in December 2023, while wage growth was high, helping to reinforce expectations that the US economy will continue to grow in 2024.

The US Department of Labor's report showed that the non-farm sector added 216,000 jobs in December 2023, much higher than the 170,000 jobs previously forecast by many economists.

November's data was also revised down, with 173,000 jobs added instead of 199,000 as previously reported.

For all of 2023, the US economy added 2.7 million jobs, down sharply from the 4.8 million jobs created in 2022.

The unemployment rate remained unchanged from November 2023 at 3.7%. However, despite the expanding labor force, wage growth remained high.

Average hourly earnings for US workers rose 0.4% in December 2023, after rising 0.4% in the previous month. Year-over-year, wages rose 4.1% in December 2023, up from 4.0% in November.

Meanwhile, data provider Epiq AACER released figures showing that bankruptcy filings in the US increased by 18% in 2023 due to rising interest rates, tougher lending standards and the gradual end of pandemic-era support.

Total bankruptcy filings — including both personal and business bankruptcies — rose from 378,390 in 2022 to 445,186 last year.

Notably, the number of corporate bankruptcy filings under Chapter 11 of the US Bankruptcy Code increased by 72% from 3,819 in 2022 to 6,569.

In December alone, the total number of bankruptcy filings fell from 37,860 in November to 34,447, but was still up 16% from the same period in 2022.

Bankruptcy filings are expected to continue to rise through 2024, as pandemic stimulus winds down, capital costs rise, interest rates rise, delinquency rates rise, and household debt hovers near historic highs, said Michael Hunter, vice president of Epiq AACER.

Household debt hit a record high of $17.3 trillion at the end of the third quarter of 2023, according to data from the New York Federal Reserve. Delinquency rates also rose, but remained below pre-pandemic levels.

Financial conditions for businesses and households have tightened significantly over the past two years due to the Fed's aggressive rate-hike cycle to curb inflation.

For example, mortgage interest rates rose to their highest level since 2001 in the second half of last year.

Earlier this week, gold prices fell for two consecutive sessions in the first two sessions of 2024 due to pressure from a stronger US dollar and uncertainty about the timing of a potential interest rate cut as shown in the minutes of the latest Fed policy meeting. But then, gold prices rose again in the session on January 4.

Although the Fed predicted that interest rates would likely fall this year, the jobs report released on January 5 reinforced the possibility of a “soft landing” of the US economy, as well as the stance of keeping interest rates high for a longer period of time.

Mr. Jerry Braakman, President and Chief Investment Officer of First American Trust, commented that this is not beneficial for gold prices, because this precious metal often reacts positively to lower interest rates, a weaker USD and slowing economic growth.

However, he said that we should not focus too much on the monthly employment report. This expert still predicts that the US economy will weaken this year, causing the Fed to lower interest rates, thereby supporting gold prices./.

According to vietnamplus.vn

Source: https://www.vietnamplus.vn/gia-vang-the-gioi-ghi-nhan-tuan-di-xuong-dau-tien-trong-mot-thang-qua-post919589.vnp

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