The US stock market dropped at the beginning of the week, gold price also recorded a third consecutive decline. The new jobs market report, though pessimistic, was not enough to stop the US Federal Reserve - the Fed from tightening monetary policy in the coming months.

Closing the session, spot gold on the New York market dropped 0.18% to $1,753.8 an ounce.

Gold Newsletter editor Brien Lundin commented: "Gold investors seem to agree with the market's view that the September jobs report, although somewhat less optimistic, is not bad enough to be worth it. hinder the Fed's plan to tighten monetary policy."

At the end of last week (October 8), gold prices also fell slightly after newly released data showed that the US economy added only 194,000 new jobs last month, while experts had forecasted that the US economy has added 194,000 new jobs last month. 500,000 new jobs.

Yields on U.S. Treasury bonds also rose yesterday as the Fed is likely to announce it will begin to shrink its bond-buying program, according to Commerzbank analyst Carsten Fritsch.

Currently, rising wages and falling unemployment show that the US labor market is quite difficult. This fact may increase inflationary pressure.

"The possibility that the Fed is preparing to tighten monetary policy will prevent gold prices from rising to the threshold of $ 1,800. Precious metal prices are currently facing downside risk in the short term if they fall below the threshold of $ 1,750," he said. Fritsch said.

The US stock market dropped in the first session of the week (October 11) because investors were concerned about the soaring oil price, many worries related to the economy and the prospect of corporate profits in the announcement. upcoming business results.

Closing the session, the Dow Jones Industrial Average fell 0.7% and closed at 34,496 points; The S&P 500 fell 0.7 percent to 4,361.1, while the Nasdaq Composite dropped 0.6 percent to 14,486.2.

The stock market fell for most of the trading day, however selling pressure increased in the last hour of trading. The indices closed the session at a low level.

The price of WTI light sweet crude oil in the US market exceeded $82 per barrel and then closed above $80 per barrel on October 11. The skyrocketing price makes many people afraid of inflation risks.

In a newly published assessment, the Bernstein organization analyzed: "High or too fast oil prices have caused many economic recessions in the past and it is likely that history will repeat itself if energy prices continue to go up. High energy prices often lead to lower disposable income for consumers." Energy stocks rallied for most of the session as oil prices rallied.

On October 11, Goldman Sachs lowered its forecast for US economic growth in 2022 to 4% from 4.4% previously; 2021 growth forecast reduced to 5.6% from 5.7%. Goldman Sachs cites that fiscal support from the US Congress will decrease and consumer consumption will decrease, especially in the service industry.
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