On Friday, the Gold entered a narrow range with cautious investors positioning themselves for US employment data. However, the bright metal recorded the second -week earnings in a row with the expectations of slowing down US interest rate hikes. Analysts interpret the market and share their predictions.
How will the US NFP data effect on gold prices?
Spot Gold has seen $ 1,804.46, the highest level since August 10th. However, then regressed and closed the week for $ 1,797.98. The US gold futures decreased by 0.2 %for $ 1,812,20. Activrades senior analyst Ricardo Evangelista made the following assessment before the US NFP data:
A downward disappointment that can further reduce the scope and scale of the Fed’s tightening move will probably create more weakness in the dollar. Therefore, it will support gold prices. However, it will encourage the hawks in the FED and create upward for the dollar.
OCBC FX strategist Christopher Wong makes a similar comment with Evangelista:
The wage increase and a softer data in the NFP will be a condition in which all stars are aligned for more weakening of the dollar. Therefore, this gold will benefit more. However, it is possible to stop a upward surprise in the report, especially for gold, which is traded near the key resistance level.
Meanwhile, the US Department of Labor announced the non -agricultural payroll (NFP) data on Friday. In November, the United States created 263,000 new businesses over 200,000 expectations. In addition, this historically shows a strong recruitment rate. Therefore, the second scenarios of Evangelista and Wong remain valid.
“Critical Level for Gold: 1.805 dollars”
According to Rupert Rowling, Kinesis Money analyst, the fact that gold achieves significant gains in November and then carries this momentum to December shows the depth of support created for bright metal.
Hareesh V, President of Geojit Financial Services Commodity Research in Kochi, India, says that the dollar has improved to a great extent after the comment of FED President Jerome Powell on Wednesday. He also says that this supports the charm of gold. In this context, the analyst makes the following statement:
It is possible for the $ 1,805 level to serve as a close resistance for gold. A break is likely to trigger new rally.
How did the US NFP data see the market?
Senior analyst Jim Wyckoff says in a daily report that the employment report is stronger than expected is some ‘higher inflation effects’. The hourly fee also increased by 0.6 %last month to an average of $ 32.82. In addition, 13 months was the biggest increase. Wyckoff interprets the data and effects as follows:
The market saw these figures warm. In total, this report is very strong compared to the Fed’s appreciation. It also shows that the FED will be reluctant to take too many steps back in the aggressive monetary policy so far.
Avatrade’s chief market analyst Naeem underlines the following in a original market assessment:
Powell stole the US NFP thunder at the beginning of this week. Also, that’s what the traders thought. However, today’s data confirmed that there was no thunder or drama shortage when it comes to US economic data.
“There are symptoms of purchase fatigue for gold”
Kriptokoin.comAs you have followed, the gold reached $ 1,800 for the first time in four months. However, TD Securities economists are waiting for a decrease in the purchase appetite for yellow metal. They explain these views as follows:
Yesterday’s sharp rally increased gold prices on a few important triggers. Thus, the trend follower accelerated Short position closure. Then, CTA trend followers will start to add Short position again in this session. At this point, the risk of positioning of gold is no longer upward. In addition, a rally to the north of $ 1,830 points to marginal CTA intake only from existing position levels. Therefore, we see the first signs of purchasing fatigue underneath.
“It is possible for gold to lose some of its earnings again”
Gold price, increased by more than 8 %in November. However, according to Commerzbank strategists, the current rally in the gold market is likely to lose speed before the Central Bank meetings planned to be held next week. For these predictions, strategists make the following statement:
Thanks to the partially weakened US dollar, precious metals have recently gained from the expectation of the FED’s expectation of more moderate interest rate hikes. However, this mobility is suspicious whether it will continue by the end of the year. It is possible that gold will lose some of its gains before the Central Bank meetings to be held next week. This Arda has not reported any other sales since the mid -November of the ETFs followed by Bloomberg. However, especially long -term minister financial investors are still hesitant.
