Fed Chair Jerome Powell’s hawkish rhetoric earlier this week prompted a sharp drop in spot gold, though yesterday’s higher-than-expected US weekly jobless claims have since enabled the precious metal to claw its way back up to pare earlier losses.
At the time of writing, spot gold is testing its 21-day simple moving average for immediate resistance ahead of today’s keenly-awaited US jobs report.
A lower-than-expected NFP headline figure today, which suggests that January’s blockbuster number was a fluke, is likely to restore spot gold back above $1850.
However, a stronger-than-expected February NFP print which ramps up market fears for an even-more aggressive Fed may drag spot gold back closer to the $1800 mark.
Still, bullion may be able to keep its head above that psychologically-important level provided central banks continue adding the precious metal to their reserves.
Gold’s recent crawl back up closer to $2k is awaiting validation from the US PCE core deflator due later today. Further evidence of still-sticky US inflation, with another 4.7% print that matches January’s number, may force bullion bulls to wait a while longer before reclaiming the $2k handle.
31 March 12:24
Spot gold is once again easing away from the $2000 handle, after having twice this week briefly surfaced above that psychologically-important mark. From a technical perspective, gold appears to be clearing even more froth as its 14-day relative strength index pulls back once more from the 70 threshold which marks “overbought” conditions.
24 March 12:19
Gold has broken above the psychologically-important $2k for the first time since March 2022 (following Russia’s invasion of Ukraine)! And gold could stay supported this week, as major central banks hold their respective policy meetings amid the market tumult and banking crisis engulfing both sides of the Atlantic.
20 March 10:41
Spot gold has skyrocketed towards its biggest weekly gain since November as contagion fears permeated global financial markets this week. The Credit Suisse crisis exacerbated the risk-off sentiment stemming from Silicon Valley Bank’s collapse, prompting market participants to rush towards safe haven assets.
17 March 12:00
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