Will sudden rises in gold prices be permanent?

3D illustration of gold ingots over black background with a chart. Financial concept, horizontal image. - İllüstrasyon
Will sudden rises in gold prices be permanent?

The non-farm payrolls announced for May came very below expectations with 75,000 while the jobless rate held steady as expected at 3.6 pct. Wage growth came out at 0.2 pct vs. 0.3 pct in the same month. The worse-than-expected job creation disappointed the markets, accelerating the losses in dolar assets. Although the markets estimate that Fed to keep rates unchanged at the June 18-19 policy meeting, the first rate is expected to arrive in July with another decrease in September. As the employment date posted was well below expectations, the U.S. 10-year bond yields decreased to the lowest level since September 2017. Following the employment data, the depreciation of the dollar assets caused Gold prices to rise up to 1350. However, we see that the gains in Gold, which has been subjected to some withdrawal from this point — an important resistance level — have settled to some extent. On the other hand, it is seen that the deal reached between the U.S. and Mexico increases the withdrawal movement on the Gold prices. This morning, on the Asian side, the Japanese economy grew above expectations, while China’s exports rose by 1.1 percent. There is a 8.5 percent contraction in imports, but risk appetite is maintained, especially in the US markets.