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.
PBOC’s powerful policies to boost Asia
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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