Logo of Phnom Penh Post newspaper Phnom Penh Post - Gold gains as US dollar slips amid poor job creation, EU growth

Gold gains as US dollar slips amid poor job creation, EU growth

Content image - Phnom Penh Post
Analysis by Golden FX Link Capital business manager Chea Prasith.

Gold gains as US dollar slips amid poor job creation, EU growth

The weakening of the US dollar against major currencies has made gold a safe haven for investors – pushing prices sharply to around $1,813 to $1,843 per ounce since May 7.

Investors continue to fancy gold with unpromising economic data from the US and positive signals emerging from the EU’s growth prospectus continuing to pressure the greenback.

US job creation in April was poor – the non-farming payroll stood at only 266,000 compared to 770,000 in March, forcing unemployment to rise from six per cent to 6.1 per cent despite a vaccination campaign that yielded strong results.

Outside the US, the EU’s economic growth has been strengthening on the back of successful preventive measures to control the spread of Covid-19 and the European Commission’s move to allow tourists to return auguring well for the bloc.

According to industry analyst KITCO’s online survey on gold price trends, 76 per cent of the 1,485 analysts asked expected gold to rise.

Saxo Bank head of commodity strategy Ole Hansen said: “Gold prices may continue to rise due to lower bond yields, prompting investors to switch targets by buying gold instead to hedge losses in the future.”

Therefore, for this week’s trading recommendation, traders should buy gold at $1,798 per ounce, setting the first take-profit function at $1,815 per ounce, the second at $1,823 per ounce, and setting the stop-loss function at $1,790 per ounce.

MOST VIEWED

  • NY sisters inspired by Khmer heritage

    Growing up in Brooklyn, New York, Cambodian-American sisters Edo and Eyen Chorm have always felt a deep affinity for their Cambodian heritage and roots. When the pair launched their own EdoEyen namesake jewellery brand in June, 2020, they leaned heavily into designs inspired by ancient Khmer

  • Schools drawn into Manet degree row

    Prime Minister Hun Sen stepped into the Hun Manet-Sam Rainsy war of words over the validity of Manet’s degree from the US Military Academy at West Point, set off by Rainsy’s claims that Manet had received a “second-class degree” or “honorary degree”. Hun

  • Cambodia records first Omicron community case

    The Ministry of Health on January 9 reported 30 new Covid-19 cases, 29 of which were imported and all were confirmed to be the Omicron variant. The ministry also reported 11 recoveries and no new deaths. Earlier on January 9, the ministry also announced that it had detected the Kingdom's

  • The effects of the USD interest rate hike on Cambodian economy

    Experts weigh in on the effect of a potential interest rate expansion by the US Federal Reserve on a highly dollarised Cambodia Anticipation of the US Federal Reserve’s interest rate hike in March is putting developing economies on edge, a recent blog post by

  • PM eyes Myanmar peace troika

    Prime Minister Hun Sen has suggested that ASEAN member states establish a tripartite committee or diplomatic troika consisting of representatives from Cambodia, Brunei and Indonesia that would be tasked with mediating a ceasefire in Myanmar. The premier also requested that Nippon Foundation chairman Yohei Sasakawa

  • Kampot tourism quay ‘90% done’

    Construction on Kampot International Tourism Port – a 4ha quay in Teuk Chhou district about 6km west of Kampot town – has fallen off track, reaching 90 per cent completion, according to a senior Ministry of Tourism official last week. The project is now planned to be finished