Gold continues its sideways consolidating price trend for the second day in a row.
The price of gold (XAUUSD) is still struggling to acquire any significant momentum on Friday. And is still stuck in a small trading range below the $2,050 mark. As we head into the European session. Instead of making bold direction bets. Traders were hesitant to act and would rather wait for the official monthly employment report from the US to be released. The widely recognized Nonfarm Payrolls (NFP) report will be examined in order to gain. Additional insight into the Federal Reserve’s upcoming policy decisions. This will ultimately determine the non-yielding yellow metal’s near-term direction.
The upside for the metal appears to be capped by diminished expectations of more aggressive policy easing by the Fed.
The positive US job market reports released on Thursday prompted. Investors to reduce their expectations for a more aggressive policy easing by the US central bank ahead of the crucial data risk. The elevated yields on US Treasury bonds. Which support the US dollar (USD) and limit gold price advances, are nevertheless encouraged by this. The market’s general cautious attitude appears to have restricted the loss. Which helps the precious metal’s safe-haven reputation. However, the XAUUSD is still well within striking distance of a week and a half. Wednesday’s low was reached.
Daily Market Movers: Mixed fundamental cues cause the gold price to lack a clear direction.
China’s economic problems and geopolitical concerns are still weighing on investors’ sentiments, which helped to underpin the safe-haven Gold price on Friday.
The benchmark US Treasury yield, which limits the XAUUSD pair, remains stable at 4.0% with decreased expectations of numerous rate reduction by the Federal Reserve.
Following the announcement of the positive US macro data on Wednesday, traders reduced their predictions for the number of rate cuts by the Fed in 2024 to four from six.
According to a survey released on Thursday by Automatic Data Processing (ADP). US private sector companies added 164K positions in December, compared to the anticipated 115K jobs.
Furthermore, a study released by the US According to data from the Department of Labor (DOL). Weekly jobless claims decreased more than anticipated last week to 202K.
The proponents of the US dollar, on the other hand, appear hesitant to make bold wagers. And would rather hold off until the highly anticipated official US monthly jobs report is out.
Traders don’t appear eager to make bold wagers prior to the important US monthly jobs report (NFP).
It is anticipated that the well-known Nonfarm Payrolls (NFP) data will reveal. That the economy created 170K new employment in December as opposed to 199K in November.
While average hourly earnings growth is predicted to slow to 3.9% YoY from 4.0% in November. The unemployment rate is predicted to slightly increase to 3.8% from 3.7%.
The Fed’s short-term policy perspective, which affects the USD. And gives the non-yielding metal new life, may be guided by the important employment data.
