Market Analytics and Considerations
Key Notes
- After sliding yesterday, gold recovered some support today.
- Yesterday, after strong data, the US dollar started to rise again.
After the US Dollar rocketed higher overnight on job data showing a tightening labor market, the price of gold fell.
It dropped to a trough of US$ 1,825 Thursday after reaching a seven-month pinnacle of US$ 1,865 on Wednesday. The price of the bullion has remained stable today at around US$ 1,840.
This week, the US Dollar has dominated trading in many markets, with massive swings witnessed in a variety of currency pairs.
After the ADP national employment report revealed that 235k jobs were created in December as opposed to the 150k expected, views of where the Federal Reserve is aiming with its rate path remain in the spotlight.
The solid data may indicate that the Fed still must take additional steps to ensure economic stability. The non-farm payroll statistics for today could add to the uncertainty.
James Bullard dialled back on his formerly ridesharing tone, but Fed speakers Esther George and Raphael Bostic kept up the aggressive drumbeat.
As a result of the possibility of monetary tightening policy continuing for prolonged than initially anticipated, Wall Street ended its trading session negative. Futures indicate that their day will begin steadily.
Most currency combinations have gained traction versus the US Dollar, while the leading APAC indexes have both posted moderate advances. The exception is USD/JPY, which is trading little stronger.
The price of crude has increased somewhat today, with the WTI futures contract close to US$ 74.50 barrel as well as the Brent
