On Friday, the highly-anticipated US Nonfarm Payrolls (NFP) rose by 199K in November from the previous reading of 150K. Additionally, the Unemployment Rate declined to 3.7% from 3.9% in the previous reading. Average Hourly Earnings held steady at 4.0%, matching market expectations.
Finally, the preliminary University of Michigan Consumer Sentiment Index for December came in at 69.4 versus 61.3 prior. In response to the data, the US Dollar Index (DXY) rose to 104.25 and the US Treasury yields edged higher, with the 10-year yield climbing from 4.15% to 4.28%.
The Fed will announce the interest rate decision on Wednesday.... its last meeting of the year. The markets anticipate no change in rates for its December meeting and think the dot plot will come down. Nonetheless, the market lowered its expectations for the first-rate cuts from March to May after stronger employment data
The firmer US Dollar (USD) and the concern about China’s deflation create a headwind for the gold price. On Saturday, the National Bureau of Statistics of China revealed that the nation’s Consumer Price Index (CPI) dropped 0.5% YoY in November from a 0.2% decline in October, worse than the market expectation of 0.2%. The Producer Price Index (PPI) declined 3.0% YoY in November from a 2.6% decline in October, below the market consensus of a 2.8% decline in the reported period.
Looking ahead, market players will monitor the US Consumer Price Index (CPI) on Tuesday. The spotlight will be the Federal Open Market Committee (FOMC) meeting, held on Tuesday and Wednesday. On Technical side price is currently trading under Daily , Weekly and Monthly pivot which is good for bears on Intraday and bulls need good confirmation from lower support levels (1978 :fib 0.50 Level) or daily candle need to be close above daily pivot average
Finally, the preliminary University of Michigan Consumer Sentiment Index for December came in at 69.4 versus 61.3 prior. In response to the data, the US Dollar Index (DXY) rose to 104.25 and the US Treasury yields edged higher, with the 10-year yield climbing from 4.15% to 4.28%.
The Fed will announce the interest rate decision on Wednesday.... its last meeting of the year. The markets anticipate no change in rates for its December meeting and think the dot plot will come down. Nonetheless, the market lowered its expectations for the first-rate cuts from March to May after stronger employment data
The firmer US Dollar (USD) and the concern about China’s deflation create a headwind for the gold price. On Saturday, the National Bureau of Statistics of China revealed that the nation’s Consumer Price Index (CPI) dropped 0.5% YoY in November from a 0.2% decline in October, worse than the market expectation of 0.2%. The Producer Price Index (PPI) declined 3.0% YoY in November from a 2.6% decline in October, below the market consensus of a 2.8% decline in the reported period.
Looking ahead, market players will monitor the US Consumer Price Index (CPI) on Tuesday. The spotlight will be the Federal Open Market Committee (FOMC) meeting, held on Tuesday and Wednesday. On Technical side price is currently trading under Daily , Weekly and Monthly pivot which is good for bears on Intraday and bulls need good confirmation from lower support levels (1978 :fib 0.50 Level) or daily candle need to be close above daily pivot average
