“The 261,000 new US nonfarm payrolls, above the consensus estimate of 193,000, should ease pressure on the Federal Reserve to raise interest rates further. Lower interest rates are bullish for the yellow precious metal as it is an interest-free asset,” the bank said in a statement.
“Real yields on US 10-year bonds fell 29.6 basis points in November. At the end of the month, the price of gold also received support from the publication of data on the US consumer price index for October. These figures were lower than expected by the market earlier. While declining inflation has traditionally weighed on gold, market sentiment appears to be centered on the prospect of a slower rate hike by the Fed or an earlier dovish move,” analysts at the bank said.

They went on to say that during the month, gold supported the weakening of the US dollar in the face of declining nominal interest rates. The DXY Index was down 5% during the month. A depreciating US dollar has a positive effect on gold, as it makes the yellow precious metal relatively cheaper for foreign buyers.