The desperate market pundits are just hunting for a reason, which will lead to an increase in the interest rates by the Federal Reserve. The gold prices increased in the United States’ market recently and this is going to discourage the central bank to raise interest rates in the near future. The US central bank may postpone its plan to go ahead with a rate hike.
The unemployment rate is lowest since last seven year. The job growth has increased and pushed it at the seven year low of 5.4 percent. The market was expecting that this will keep the central bank on its way to raise interest by the end of current financial year. The latest data indicates that only 85,000 jobs have been added, the lowest number since June 2012. The economy is giving mixed signals to the Treasury department. The better number during earlier period of the current fiscal led to a speculation that interest rates will boosted in June, after policy meeting is concluded.
But now experts believe that the Federal Reserve will consider increasing them by the end of this year. The rate of gold was increased b y 0.3 percent and reached at $1,187.52 an ounce. The United States Gold Futures have projected sharp increase of $6.70 per ounce. The U.S. bonds returns are better investment than gold as the metal doesn’t pay any interest. Precious Metals Strategist George Gero from the New York based RBC Capital informed that the effects of job report will be temporary. There are no clear sign of interest rate hikes as of now, he added.