Gold Price is correcting ahead of NFP

Gold is correcting from a significant sell-off in the week ahead of NFP. The bulls eye a 50% mean reversion but it all comes down to key data on Friday.

Despite gold kicking off the second half of the year with a drop below $1,800 per ounce, Bloomberg Intelligence sees the precious metal moving higher versus broader commodities, which are at risk of a reversal.

The gold price is consolidated and flat on the day around $1,739 after edging up from a nine-month low early on Thursday. The precious metal has climbed from a low of $1,736.58 and has reached a high of $1,749.13 on the day as markets get set for Friday’s US Nonfarm Payrolls data.

The data on Friday will be keenly eyed and the gold price will send on it. The yellow metal has been pressured on the back of recession fears and weak stock markets that have seen investors move into the US dollar and bonds instead. With that being said, Wall Street benchmarks have climbed rose on Thursday, as investors reacted positively to the previous day’s commentary from Federal Reserve offices that the aggressive pace of interest rate hikes could be tempered if growth suffered.