Non-Farm Payrolls and the Impact on Gold and Oil

5 wrz

Today, Thursday, investors are focused on gold and oil, two commodities that are experiencing significant moves. Gold prices have reached a record high above $2,500 per ounce in a trend that began on August 19, driven by the expectation that the Federal Reserve (Fed) will cut interest rates. Fed Chairman Jerome Powell's speech in Jackson Hole on August 23, which promised monetary policy adjustments to support the labor market and keep inflation around 2%, has been key to this rise. This backdrop suggests a potential growth super cycle for gold and silver.

In contrast, Texas crude (WTI) has fallen by 1.62%, standing at 69.20 dollars per barrel, its lowest level in nine months. Its price has contracted by 13.90% since August 27. This decline is due to uncertainty over OPEC+ production and weakness in manufacturing activity in the US and China, as well as possible production disruptions in Libya. Crude oil inventories data and new jobless claims in the US will be crucial for investment decisions, as tomorrow's non-farm payrolls figures could affect both Fed policy and commodity markets. In this environment, Fed monetary policy is ushering in a new growth cycle for gold and silver.

**New era in monetary policy = New hyper-growth super cycle for gold and silver **

Ion Jauregui - Analyst ActivTrades





*******************************************************************************************
The information provided does not constitute investment research. The material has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and such should be considered a marketing communication.

All information has been prepared by ActivTrades ("AT"). The information does not contain a record of AT's prices, or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information.

Any material provided does not have regard to the specific investment objective and financial situation of any person who may receive it. Past performance is not reliable indicator of future performance. AT provides an execution-only service. Consequently, any person acing on the information provided does so at their own risk.