Gold price came under heavy bearish pressure and declined below $2,020 on Friday. After the data from the US showed that Nonfarm Payrolls rose by 253,000 in April, much higher than the market consensus of 179,000, the 10-year US T-bond yield surged 2% in a matter of minutes, causing XAU/USD to turn south.
Federal Reserve (Fed) hints to pause the rate hike trajectory after lifting the benchmark interest rates to the highest levels since 2007. The same joins Fed Chairman Jerome Powell’s cautious remarks, by suggesting the current monetary policy is at sufficiently restrictive levels, to weigh on the US Dollar and propel the Gold price.
Following that, Thursday’s mixed US data and increasing market bets on the Fed’s September 2023 rate hike add strength to the Gold price run-up. Additionally, fears of banking fallouts in the US and debt ceiling expiration also challenge the XAU/USD traders.
Alternatively, China’s softer PMIs and likely challenges for the US jobs report to meet downbeat forecasts, considering the strong early signals, tease the Gold sellers.
Moving on, the monthly prints of the US jobs report for April will be important to watch for clear directions.
Federal Reserve (Fed) hints to pause the rate hike trajectory after lifting the benchmark interest rates to the highest levels since 2007. The same joins Fed Chairman Jerome Powell’s cautious remarks, by suggesting the current monetary policy is at sufficiently restrictive levels, to weigh on the US Dollar and propel the Gold price.
Following that, Thursday’s mixed US data and increasing market bets on the Fed’s September 2023 rate hike add strength to the Gold price run-up. Additionally, fears of banking fallouts in the US and debt ceiling expiration also challenge the XAU/USD traders.
Alternatively, China’s softer PMIs and likely challenges for the US jobs report to meet downbeat forecasts, considering the strong early signals, tease the Gold sellers.
Moving on, the monthly prints of the US jobs report for April will be important to watch for clear directions.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.