GOLD 7/8 : Haven't gotten out of the comfort zone yet

Aug 7, 2023

Gold had a volatile weekend after the release of the Nonfarm data. Gold price fell to 1925 and then rose more than 20 prices to 1946

Nonfarm data showed 187,000 new jobs in July, slightly lower than forecast. This is a positive signal for the Fed for a soft landing. However, steady wage growth and falling unemployment suggest that labor market conditions continue to tighten.

The market doesn't care that much, just the falling jobs data is reason enough for a bit more optimism. Thereby supporting gold price increase

This week, the market continues to focus on the CPI inflation data released on Wednesday

Aug 7, 2023

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Any signs of recovery in the labor market should give the Fed more incentive to raise rates further, as the bank is targeting some softening of labor conditions as part of its crusade. against inflation.

A similar trend for August could raise expectations that the Fed has completed its rate hike cycle, potentially denting the dollar and boosting non-yielding assets like gold.

Aug 7, 2023

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Gold price (XAU/USD) remains on pause as it retreats to a valid save of $1915 support amid broad-based US Dollar recovery, as well as mixed mood, ahead of scheduled signs of use from the US, China, Australia and New Zealand. Also important are this week's UK growth figures and China trade data as markets struggle to find clear direction.

It's worth noting that Friday's drop in US Nonfarm Payrolls (NFP) data was combined with a mixed Fed signal combination to trigger a US Dollar pullback from highs. from that allow Gold price recovered from multi-day support before the line.

Aug 7, 2023

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The dollar received support from much stronger-than-expected payroll data released by ADP. The reading follows data earlier this week that showed some signs of a recovery in US construction and manufacturing.

The data boosted bets that the Federal Reserve would have enough economic room to raise interest rates further and keep them there - a scenario that bodes well for gold and metals markets.

Rising interest rates push up the opportunity cost of holding bullion, while also showing that investors prefer the dollar as a safe-haven to gold.
The best strategy, limit when the news comes out

Aug 7, 2023

Note

The world spot gold price stood around the threshold of 1,933.5 USD/ounce.

Gold posted modest gains as the US July jobs report was weaker than expected. Specifically, there were 187,000 jobs compared to the expectation of 205,000.

The US job market is slowly cooling down and that's exactly what the Fed wants to see. The market is thinking that interest rates have peaked and the Fed's next move is to lower rates, which should give gold a short-term rally in last week's session.

Technically, it looks like the Gold Bull run is just a short-term retracement. So will still prioritize Sell in the first session of this week.