10.12.201811:49 Forex Analysis & Reviews: Yellow metal went up to a five-month high

Experts record the active growth in demand for gold as a safe asset. Over the past five months, its value has reached record levels.

The rise in the price of the precious metal also contributed to not so good statistics on the American labor market over the past month. According to a report by the US Department of Labor in November 2018, a recorded of 155 thousand jobs were organized in the country, which is much less than the average forecast of 200 thousand. At the same time, the October figures were revised down from 250 thousand to 237 thousand. The unemployment rate in the United States has not exceeded 3.7%, which is the lowest value since 1968.

The publication of this news has caused a significant increase in demand for the so-called "risky" assets, which include stocks and bonds. Experts believe that weak labor market statistics may force the Fed to soften its position. The increase in the number of new jobs and wages was lower than expected, which caused disappointment to market participants. The futures market began to take into account the slower rate of increase in interest rates in the US, analysts say.

On Monday, December 10, the price of gold rose to the level of $ 1,251 per 1 ounce, which is the highest figure since July 11, 2018. The precious metal is rising in price against the backdrop of negative dynamics of Asian stock markets and lower prices for US stock index futures. Investors fear a rise in tensions in trade relations between America and China, which forms an increased demand for safe-haven assets, particularly gold.

Note that investors in the yellow metal do not receive dividends (as owners of shares) or coupon payments (as holders of bonds). Therefore, the precious metal is under pressure when interest rates rise and on the contrary, receive support when they fall.