US Jobs report and gold prices in focus

US stock indices began the week with a price gap in their movements

By Laila Eid | @Laila Eid | 28 August 2023

close (2)
  • The US jobs report is scheduled for release on Friday

  • Gold is currently trading at the $1915 level

  • The US dollar index has reached its highest level since the start of June

Rising US stock indices

The trading week began on a positive note for US indices futures. This upward movement followed Federal Reserve Chair Jerome Powell's coherent remarks delivered at the Jackson Hole Symposium on Friday. While the technology index and the S&P 500 closed the previous week on an optimistic note, the Dow Jones Industrial Average experienced a modest decline of 0.40%. Notably, US Treasury bonds with maturities of 10 years and 30 years settled at levels of 4.23% and 4.27%, respectively.

Powell's address at the Jackson Hole Symposium underscored the Federal Reserve's preparedness to implement further interest rate hikes if deemed necessary. He reiterated the Fed's commitment to data-driven decisions.

All eyes are now on the Federal Reserve's preferred gauge of inflation expectations. Additionally, market participants are eagerly awaiting the upcoming US Non-Farm Payrolls report. Projections indicate an anticipated addition of 169K jobs, slightly lower than the 187K jobs recorded in June.

Gold stabilizes around $1915

The price of gold has stabilized near the $1915 level during the current trading session. In Friday's session, gold experienced a dip to $1903 per ounce, only to rebound and settle at $1914 per ounce during Jerome Powell's Jackson Hole speech. Over the course of the preceding week, gold exhibited a positive performance, registering a gain of over 1%. This marked a notable reversal following four weeks of decline, during which the precious metal's value dropped by more than 3%, sliding from $1960 to $1890.

Concurrently, the US dollar index exhibited a marginal decline of 0.10% at the time of this report's release. This minor dip contributed to a slight uptick in gold prices. The movement was influenced by measured statements from monetary policy decision-makers. It's important to note that despite this slight pullback, the US dollar index still holds its highest position in six weeks, standing at 104.12.