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Gold prices have risen nicely this week, locking in a 3.4% weekly gain by Thursday. Traders are now betting on the non-farm payroll report on Friday — trying to glean some clues about the Federal Reserve's interest rate cut plans for this year.
Soojin Kim, an analyst at Mitsubishi UFJ Financial Group, straightforwardly said: The market is waiting for the December non-farm payroll report on Friday. Expectations are for continued strong hiring, but a steady unemployment rate. This "strong and steady" scenario actually doesn't give the Fed much incentive to restart rate cuts.
Another issue currently on traders' minds is the appointment of the Federal Reserve Chair. Treasury Secretary Mnuchin revealed that President Trump is expected to announce the new Fed Chair later this month. This decision could directly influence the future direction of interest rate policies, so it’s worth paying close attention.