Gold: Cautiously bid around $1510 ahead of the US NFP, Fedspeak

  • Gold holds on to recovery gains for the fourth consecutive day ahead of the US NFP.
  • UK/US politics, Asian developments, and trade headlines support the bullion during the early day.
  • Bond yields stay little changed, Asian stocks mixed amid cautious sentiment.

With the multiple catalysts pushing investors to risk-safety, Gold prices remain on the recovery mode while taking bids to $1510 during early Friday.

The yellow metal recently benefited from the global slowdown fears and political uncertainty surrounding the US and the UK. However, China’s absence for the week and traders’ cautious mood ahead of the key US employment report keep a tab on the north-run.

As a result, the US 10-year Treasury yields make the rounds to 1.54% while Asian equities stay mixed with NIKKEI and HANG SENG marking losses while the ASX 200 and the NZX50 flashing contrasting signals.

During the early Asian session, news signaling likely support to the US President Donald Trump’s impeachment and uncertainties to the Brexit proposal favored the bullion. Adding to the sentiment was the White House Economic Adviser Navarro’s comments that there would not be any small trade deal with China, which in turn raises the odds for one more round of failed talks between the US and Chinese diplomats.

Also adding to the precious-metals’ strength are downbeat signals from the Reserve Bank of Australia’s (RBA) bi-annual Financial Stability Review (FSR) and also concerning Japan.

Statements from the Australia and New Zealand (ANZ) Bank’s report, “Investors continue to flood into the gold-backed ETFs, with holdings extending their streak of daily inflows to 13 days. It wasn’t all good news, with Indian gold imports slumping 86% y/y in September,” also reasons the safe-havens run-up.

While recently worrisome signals from the forward-looking indicators confuse market players about the September month jobs report, Westpac says, “US Sep nonfarm payrolls are anticipated to increase by 145k, broadly in line with the six month average of +150k. Factors in play this month include widespread retail store closures, hiring related to the census, softness in manufacturing but implied strength in very low jobless claims data. The unemployment rate is seen to hold at 3.7% while the annual pace of average hourly earnings continues to track at 3.2%yr.”

In addition to the employment data, comments from the US Federal Reserve Chairman at a Fed Listens event including other policymakers of the US central bank will also be closely observed for fresh direction.

Technical Analysis

FXStreet Analyst Ross J Burland highlights the importance of $1,535 resistance to support bulls cheering the break of $1,500:

“Having recovered from below a 50% mean reversion of the late June swing lows to recent highs around 1460/70, the price of Gold is turning heads again as the bulls seek out a run back towards the 1520 level. They will have eyes on the 1535 resistance level. On a break of that resistance that has proven to be robust on recent attempts, bulls will then look to a 1550 target ahead of 1,590 as the 127.2% Fibo target. On the downside, bears are looking to the 19 July swing highs down at 1452.93. Eyes will then be on the 61.8% Fibo of the same range at 1449.56 ahead of a full 100% retracement to 1380.”

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.

Feed news

Latest Forex News

Editors’ Picks

GBP/USD catches fresh bids, regains1.3400 ahead of UK PMIs

GBP/USD sees a fresh leg higher in early European trading, as the bulls take out the 1.34 handle amid growing optimism over a speedy and soft Brexit. The focus remains on the UK Markit Preliminary PMIs ahead of BOE.


EUR/USD: Inverted hammer on D1, flash PMIs eyed

EUR/USD created a bearish inverted hammer candle on Friday, establishing 1.12 as key resistance. A bearish hammer reversal would be confirmed if the spot closes Monday below 1.1102. Better-than-expected German PMI is needed to avoid a bearish close.


Week Ahead – Phase-one trade deal and UK election aftermath

The US dollar remains at a critical juncture as Fed policy will be on hold for the foreseeable future and as we start to see an economic rebound come out of Europe. The world’s largest and strongest economy is likely to start to see economic growth slow in the fourth quarter.

Read more

Gold: Flatlined after the biggest weekly gain since September

Gold is lacking a clear directional bias in Asia, having eked out its biggest weekly gain in nearly three months. The yellow metal is currently trading at $1,474 per Oz, representing little or no change on the day.

Gold News

USD/JPY clings to modest gains, just below mid-109.00s

The USD/JPY pair edged higher on the first day of a new trading week, albeit lacked any strong follow-through and remained well within the previous session's trading range.