Gold price attracts some buyers to new two-week highs in Friday’s early European session.
The gold price (XAUUSD) extends its surge and achieves new two week highs during early European trading hours on Friday. Investors are now opting to sit on the sidelines and wait for the release of the much regarded monthly employment data from the United States. Moreover The well known Nonfarm Payrolls (NFP) report will play a crucial role in influencing the Federal Reserve’s (Fed) future policy decisions. In turn this should provide a new impetus to the non-yielding yellow metal.
Fed rate cut bets are keeping US bond yields and the dollar low, providing some support.
Heading into the main data risk, increased bets on the Fed cutting interest rates in September. Supported by incoming softer US macro data, could continue to act as a tailwind for the gold market. Furthermore, dovish Fed predictions keep US Treasury bond yields. And the US Dollar (USD) near multi week lows. Which should help limit the commodity’s downside. Aside from that, geopolitical concerns caused by Middle Eastern crises predict. That the XAUUSD will follow the path of least resistance to the upside.
Daily Market Movers: Gold price bulls become wary ahead of the critical US jobs data.
Growing acceptance of The Federal Reserve’s decision to begin decreasing interest rates later this year. Despite evidence of a slowing in the US economy, continues to boost the non-yielding gold price.
Moreovdr The US Department of Labor (DoL) revealed on Thursday that the number of Americans filing for unemployment insurance benefits climbed by 229K in the week ending June 1.
This, combined with Wednesday’s ADP report on private-sector employment, implies that the US labor market is cooling, bolstering expectations for a September Fed rate decrease and weighing on US Treasury bond yields.
The yield on the benchmark 10-year US government bond is near its lowest level in two months, which is seen eroding the US dollar and serving as a tailwind. for yellow metal.
Traders prefer to wait for the US NFP report before determining the near-term trend.
The underlying strong optimistic attitude in global share markets may prevent traders from speculating for greater gains ahead of the release of key US monthly employment data.
The well-known Nonfarm Payrolls (NFP) data is projected to reveal that the US economy added 185K jobs in May, up from 175K the previous month, while the unemployment rate remained stable at 3.9%.
Aside from that, Average Hourly Earnings will influence the inflation trajectory and the Fed’s future policy decisions, assisting in defining the next leg of a directional move for the XAUUSD.
