Gold Pauses Ahead of NFP Report Amid Fed Speculation
Gold finds itself in a holding pattern as investors adopt a cautious stance, eagerly anticipating the imminent release of the Nonfarm Payrolls (NFP) report. The precious metal has maintained its near-term trend, bolstered by growing speculation that the Federal Reserve's (Fed) era of rate hikes is drawing to a close. While the Dollar has garnered some support from a modest recovery in US yields, the market remains on edge, ready to react to the NFP's revelations.
Earlier in the week, signals from the US labor market hinted at a softening trajectory, as evidenced by the JOLT's openings and the ADP employment report. Thursday's Weekly Jobless Claims further underscored this narrative. Against this backdrop, a disappointing NFP report on Friday would not only confirm the conclusion of the Fed's tightening cycle but also fuel speculations of rate cuts in the early months of the coming year. Such an outcome could propel both US yields and the Dollar lower, potentially providing a renewed boost to the precious metal.
Despite these expectations, the US Dollar has maintained a modestly positive tone throughout the week. The prevailing sentiment is driven by the widespread belief that monetary easing is becoming a shared theme among major central banks globally, extending beyond the Fed. As the market eagerly awaits the NFP report's insights, the precious metal remains poised for potential volatility, with its near-term trajectory hinging on the unfolding economic narrative.
Our preference
Short positions with targets at 2000.00 & 1970.00 in extension.
Gold finds itself in a holding pattern as investors adopt a cautious stance, eagerly anticipating the imminent release of the Nonfarm Payrolls (NFP) report. The precious metal has maintained its near-term trend, bolstered by growing speculation that the Federal Reserve's (Fed) era of rate hikes is drawing to a close. While the Dollar has garnered some support from a modest recovery in US yields, the market remains on edge, ready to react to the NFP's revelations.
Earlier in the week, signals from the US labor market hinted at a softening trajectory, as evidenced by the JOLT's openings and the ADP employment report. Thursday's Weekly Jobless Claims further underscored this narrative. Against this backdrop, a disappointing NFP report on Friday would not only confirm the conclusion of the Fed's tightening cycle but also fuel speculations of rate cuts in the early months of the coming year. Such an outcome could propel both US yields and the Dollar lower, potentially providing a renewed boost to the precious metal.
Despite these expectations, the US Dollar has maintained a modestly positive tone throughout the week. The prevailing sentiment is driven by the widespread belief that monetary easing is becoming a shared theme among major central banks globally, extending beyond the Fed. As the market eagerly awaits the NFP report's insights, the precious metal remains poised for potential volatility, with its near-term trajectory hinging on the unfolding economic narrative.
Our preference
Short positions with targets at 2000.00 & 1970.00 in extension.
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The robust US monthly jobs report released on Friday exceeded expectations, prompting investors to scale back their expectations for an early policy easing by the Federal Reserve (Fed). This has contributed to a rebound in US Treasury bond yields, supporting the US Dollar and dampening demand for the USD-denominated commodity.
The overall sentiment suggests a bearish continuation, with our focus on reaching the second take-profit level. Investors are closely monitoring the evolving dynamics, particularly the influence of US economic indicators on gold prices in the coming sessions.