- Gold price is licking its wounds on Friday after a massive slump.
- Markets remain mixed, US Dollar consolidates gains ahead of key US events.
- Gold bulls stay hopeful whilst above critical $1,825 support, eye $1,850 again.
Gold price is attempting a minor comeback, consolidating the 1% sell-off seen on Thursday. Gold bulls come up for air ahead of the critical US Nonfarm Payrolls release on Friday while attention turns toward next week’s US Consumer Price Index (CPI) data. Any reaction to the US NFP data could be quickly reversed, as Gold traders will resort to repositioning ahead of the critical US inflation data. Thursday’s Gold price slump was fuelled by strong US ADP employment data, which suggested that the tight American labor market could prompt the US Federal Reserve (Fed) to go higher on its interest rates for longer. US private sector (ADP) employment increased by 235,000 in December, much higher than the market consensus of 150,000. Expectations of a hawkish Fed outlook drove the US Dollar through the roof alongside the US Treasury bond yields while weighing heavily on Wall Street indices.
Also read: Week Ahead – US inflation back in focus, UK data to underline recession risks
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