Gold (Yellow Metal) registered the best week in 6 months after it shot to a new three-month high of $1843 on a terrible US jobs report. The headline NFP rose by just 266K vs. expectations of a 978K increase.
Disappointing NFP data bolstered expectations that the Fed will remain committed to its accommodative monetary policy stance, which hammered the US Treasury yields in tandem with the dollar and lifted bullion’s appeal. However, the risk-on rally in Wall Street helped the US rates to recover ground towards the weekly closing, capping the upside in the price of gold.
Gold (Yellow Metal) Registered the best week in 6 months
Gold is on a corrective mode this Monday, but holds onto the recent gains above $1830, with the upside in check (for now) amid the US dollar’s dead cat bounce. The upbeat market mood amid vaccine optimism is underpinning the recovery in the Treasury yields, which saves the day for the dollar bulls, Although the greenback’s pullback appears shallow amid a risk-friendly market environment and dovish Fed expectations.
Gold traders are taking a breather before resuming the uptrend. In absence of significant economic data from the US, gold prices will continue to remain at the mercy of the dollar and yields.
(By Neal Bhai Reports / Gold Silver Reports)