Logo of Phnom Penh Post newspaper Phnom Penh Post - Gold gains as US dollar slips amid poor job creation, EU growth

Gold gains as US dollar slips amid poor job creation, EU growth

Content image - Phnom Penh Post
Analysis by Golden FX Link Capital business manager Chea Prasith.

Gold gains as US dollar slips amid poor job creation, EU growth

The weakening of the US dollar against major currencies has made gold a safe haven for investors – pushing prices sharply to around $1,813 to $1,843 per ounce since May 7.

Investors continue to fancy gold with unpromising economic data from the US and positive signals emerging from the EU’s growth prospectus continuing to pressure the greenback.

US job creation in April was poor – the non-farming payroll stood at only 266,000 compared to 770,000 in March, forcing unemployment to rise from six per cent to 6.1 per cent despite a vaccination campaign that yielded strong results.

Outside the US, the EU’s economic growth has been strengthening on the back of successful preventive measures to control the spread of Covid-19 and the European Commission’s move to allow tourists to return auguring well for the bloc.

According to industry analyst KITCO’s online survey on gold price trends, 76 per cent of the 1,485 analysts asked expected gold to rise.

Saxo Bank head of commodity strategy Ole Hansen said: “Gold prices may continue to rise due to lower bond yields, prompting investors to switch targets by buying gold instead to hedge losses in the future.”

Therefore, for this week’s trading recommendation, traders should buy gold at $1,798 per ounce, setting the first take-profit function at $1,815 per ounce, the second at $1,823 per ounce, and setting the stop-loss function at $1,790 per ounce.

MOST VIEWED

  • Hun Sen: Full country reopening to be decided in two weeks

    Prime Minister Hun Sen has announced that if the Covid-19 situation remains stable for 15 consecutive days from the end of the October 5-7 Pchum Ben public holiday, Cambodia will reopen fully, albeit in the context of Covid-19 whereby people have to adjust their lives to

  • Cambodia unveils new quarantine regulations

    The government has modified Covid-19 quarantine requirements, shortening the duration for, among others, Cambodian officials, foreign diplomats and delegations, investors and inbound travellers in general. According to an official notice signed by Minister of Health Mam Bun Heng late on October 16, quarantine length for Cambodian

  • Cambodia sets new Covid-19 quarantine rules

    The government has modified Covid-19 quarantine requirements, shortening the duration for, among others, Cambodian officials, foreign diplomats and delegations, investors and inbound travellers in general. According to an official notice signed by Minister of Health Mam Bun Heng late on October 16, quarantine length for Cambodian

  • Hun Sen: Cambodia set to fully reopen

    Prime Minister Hun Sen concludes that the October 5-7 Pchum Ben public holiday, during which many people either flocked to their hometowns for family reunion or gathered at tourist attractions across the country, has not caused an outbreak of Covid-19. In a special address to

  • Will Evergrande change the way Chinese developers do business in Cambodia?

    China’s property sector policy has exposed the grim financial condition of real estate developers including those operating in Cambodia, which raises questions over the viability of their projects and business going forward The dark blue netting draping over one of Yuetai Group Co Ltd’

  • Cambodia voted ‘world’s friendliest country’ in Rough Guides reader poll

    Cambodia ranked number one among the “World’s Friendliest Countries”, according to a reader poll conducted by London-based international website “Rough Guides”. Taking submissions through Twitter and Facebook, “Rough Guides”, a well-known travel agency and publisher of guidebooks, said the Kingdom “was by far the