On Friday, the price of gold remained above $2,040 an ounce. Despite this, it is on track for its first drop in four weeks. The price fell because the US dollar and Treasury yields rose. People are less sure that the US Federal Reserve will quickly and significantly lower interest rates this year.
Recently, fewer Americans filed for unemployment than expected. Also, private companies in the US hired more workers in December than anticipated. These signs show the job market is still strong.
Investors are now waiting for the monthly jobs report. It might reveal that the US added 170,000 jobs in December, which is less than November’s 199,000 jobs.
The chance of the Federal Reserve reducing interest rates in March has decreased. Last week, nearly 90% of markets expected a cut. Now, it’s around 65%.
Investors are also watching the situation in the Middle East. Recent deadly explosions in Iran have raised concerns about a possible larger conflict in the region.