Today’s Gold Price Skyrocketed to USD 1,830 per Ounce

The price of gold on 10th March 2023 increased sharply. Today the gold price is USD 1,830 per Ounce. This was caused by the weakening United States dollar (USD) exchange rate due to the increase in unemployment data last week.

“Gold prices had a tough week because of what (Jerome) Powell said about the rate hike. However, the significant increase in jobless claims is keeping gold prices trading higher (along with a weaker dollar),” said RJO Futures Market Strategist Bob Haberkorn.

According to liputan6.com, The number of Americans filing new claims for unemployment benefits is increasing. This increase occurred gradually in the five months until last week. However, the underlying trends remain consistent with a tight labor market.

“The fact that we may start to see a gap in the workforce numbers makes gold traders think. Maybe the Fed can’t afford a half basis point hike at its next meeting,” said Haberkorn. He added that a big loss in nonfarm payrolls (NFP) numbers on Friday could send gold prices higher by up to USD 1,850.

The Effect of The Fed Interest Rates

Earlier, Fed Chair Jerome Powell reiterated his message of higher and potentially faster rate hikes. However, he also emphasized that the debate is still ongoing. The outcome of the decision will depend on data due before the US central bank’s policy meeting in two weeks.

“If you are bullish, you are favoring softer-than-expected US data into the FOMC meeting. The reverse will likely force a retest of the USD 1,788 downside for gold and USD 19.00 for silver,” said Erik Bregar, Director, FX & Precious Metals Risk Management at Silver Gold Bull Inc.

Besides gold prices, silver prices increased by 0.6 percent or USD 20.12 per ounce. Meanwhile, platinum prices increased by 0.8 percent to USD 945.02, and palladium added 2.1 percent to USD 1,401.53.