Gold price (XAU/USD) consolidates around $1,985 during the early Sian session on Friday. A fall in the US Treasury bond yield and the softer US Dollar (USD) support the positive momentum in the yellow metal. However, market players might turn cautious ahead of the highly anticipated US Nonfarm Payrolls (NFP) on Friday, which are expected to show an increase of 180,000 jobs in October.
Meanwhile, the US Dollar Index (DXY), the value of the USD relative to a basket of global currencies, hovers around 106.17 after bouncing off the weekly low of 105.81. The US Treasury bond yields edge lower, with the 10-year Treasury yield standing at 4.663%, the lowest level since October 13.
Markets are confident that the Federal Reserve (Fed) is approaching the end of its tightening cycle after Fed Chair Jerome Powell made it clear that financial conditions will need to remain tight to avoid further rate rises. This, in turn, weighs on the Greenback and supports USD-denominated gold.
On the other hand, the downbeat Chinese data might cap the precious metal’s upside as China is the world's largest gold producer and consumer. Traders await China’s Caixin Services PMI for October. The weaker-than-estimated data would add doubt about the recovery in the world’s second-largest economy. Earlier this week, the nation’s Caixin Manufacturing PMI fell to 49.5 in October versus 50.6 prior, worse than the expectation of a 50.8 rise.
The attention on Friday will be on the US Nonfarm Payrolls data. Also, the Unemployment rate and Average Hourly Earnings for October will be released. Traders will take cues from the data and find trading opportunities around the gold price.
© 2000-2024. All rights reserved.
This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.