Gold prices are almost unchanged on Monday, after the metal posted strong gains to end the week. In the North American trade, the spot price for one ounce of gold is $1303.08, unchanged on the day. In economic news, there are no U.S. events on the schedule. On Tuesday, the key U.S. release is CB Consumer Confidence.
The U.S. dollar retreated on Friday, after a breakthrough in the U.S. government shutdown crisis. President Trump agreed to reopen government services for a 3-week period, even though he did not receive any funds for his border wall with Mexico. Trump and Congress have been deadlocked over funding for a border wall, but Trump agreed to the temporary measure without securing any funding for his wall. Risk sentiment jumped, as investors are optimistic that the temporary deal will lead to an agreement which resolves the shutdown. Gold took full advantage of the dollar’s weakness, jumping 1.75% and hitting its highest level since early June.
The U.S labor market continues to impress the markets. as unemployment claims dropped sharply, from 213 thousand to 199 thousand. This was the first time that the indicator dropped below the 200-thousand level since 1969. The four-week average, which is less volatile, dropped by 5.5 thousand to 215,000. The strong figures indicate that the employment picture remains bright, despite the ongoing U.S. government shutdown, which has resulted in the layoff of some 800,000 government workers.
