Gold price is recording a minimal advance, even though the US Dollar is surging. The stronger than expected US economic data would keep the Fed under pressure. A break below $1760 will exacerbate a fall to $1725; otherwise, a rally to $1786 is on the cards.
Gold price turns positive after diving to new weekly lows around $1766.90 and grinds higher amid a buoyant US dollar, even though US Treasury yields are weakening under the risk aversion. The Gold Index is trading at $1769.48, almost flat, at the time of writing.
Since last Friday, US economic data revealed had increased likelihood of additional Fed tightening. The NFP data showed that the economy added 263K new jobs, above estimates, and depicted that workers are looking for higher wages. Why? Because the Average Hourly Earnings on a YoY comparison jumped from 4.9% to 5.1%.
Earlier, the US Department of Commerce revealed that Trade Balance in the United States widened to $-78.2B compared to September’s $-74.1B, beneath estimates of $-80B. Although the trade deficit expanded, data was mainly ignored as investors assessed the US economy.
Tags FED Gold monetary policy tightening nfP trade deficit
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