Gold struggles ahead of NFP data

At the time of writing, gold trades around $1695.60. in order to defend its stance, Gold attempted to build a fort near $1,690 on Thursday after a steep retreating move. Gold seeks a chance to rebound; such a pullback could push gold above the psychological resistance of $1,700.00.

The downtrend will remain as the US dollar index hovers around fresh highs at 109.98. Gold encountes some difficulty despite the lower Nonfarm Payrolls estimates. According to the estimates, the US economy generated 300k jobs in August, lower than prior 528k. Unemployment Rate is expected to stabilize at 3.5% while the US economy is still operating at robust employment levels.

The US Dollar Index has turned sideways after its inability to penetrate the psychological resistance of 110.00. The catalyst that could stop the dollar’s dream rally is the Average Hourly Earnings, which is expected to improve by 10 basis points up to 5.3%.

Price pressures are soaring in the US economy and households need higher checks to afford high inflation. Consequently, an improvement in tomorrow’s data will not profitable for the dollar bulls.