Gold Price Forecast: XAUUSD to only react to a big deviation from expectations in NFP – Commerzbank
|Gold’s excursion above the $1,900 mark proved short-lived. April Nonfarm Payrolls data from the US will be the last significant data release of the week. However, the jobs report is unlikely to impact Gold Price unless deviates significantly from expectations, economists at Commerzbank report.
Sharp rise in bond yields puts gold under pressure of late
“Gold is set to post its third weekly loss in a row. Bond yields are probably the main factor weighing on its price. Because the market-based inflation expectations have not changed, real interest rates have likewise increased noticeably. This has made gold less attractive as an alternative investment.”
“Market participants are likely to be turning their attention to the US this afternoon, where the official labour market report for April is to be published. The Bloomberg consensus anticipates a lower number of jobs created than in recent months. In our opinion, however, the data are only likely to have any noticeable impact on the gold price if they deviate significantly from expectations.”
See – NFP Preview: Forecasts from 12 major banks, robust job growth
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