Branch2 Intelligence
Gold jumps 2%, silver climbs nearly 3%: What’s driving the bullion rally
Key takeaway
Weak US jobs data sparks gold and silver rally, easing Fed rate hike fears.
- Step 11st-order: Weak US employment data reduces expectations of Fed rate hikes, weakening USD and boosting gold/silver prices.
- Step 22nd-order: Lower US yields transmit to UK gilt yields via cointegration, reducing SME borrowing costs.
- Step 33rd-order: Precious metal price rise increases input costs for UK manufacturers using gold/silver (electronics, jewellery, solar).
Source: CNBC TV18 (Markets)
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