Gold Price News and Forecast: XAU/USD elevated above $1,700 as markets presume negative rates from the Fed
|Gold: US dollar lower in the open supporting gold above $1,700
Gold is starting out the week in the consolidation of the March bull run, oscillating around $1,704 as market digest a US Nonfarm Payrolls that was not quite as bad as -22mn consensus, arriving at -20.5mn for April. The US dollar has rolled over to the bottom of the 99 handle helping gold to remain elevated for the open.
A dismal US Nonfarm Payrolls with the unemployment rate jumping to 14.7% from 4.4%, albeit below the 16.0% consensus will be a weight on the greenback for the start of this week. However, the focus will shift to the phased re-opening process of several US States as well as other nations such as the UK relaxing its lockdown measures.
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The rotation out of haven positioning on Friday saw gold fall by 0.77% to $1702.50 an ounce, wiping out much of the previous day’s gains. Yet again though, it must be emphasised that gold continues to trade off the whims of day to day sentiment. A clear direction has yet to be established in May.
Gold remains anchored in the middle of its larger $1650.00 to $1750.00 an ounce range. Until one of those sides breaks comprehensively, gold will continue to occupy the cheap seats of the financial market’s theatre.
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