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XAUUSD rebounds back to $2030 before the NFP

XAUUSD rebounds back to $2030 before the NFP

Gold bulls are trying to stabilize at $2030 despite the looming economic uncertainty, after briefly reaching an all-time high at 2134.80 during the trading session last Friday.

Bullion prices have continued to climb up to 2029.23 on Friday morning amid the weaker greenback and treasury yields as the market sentiment leans towards the interest rate cuts to occur as early as March 2024.

At the moment, the markets imply a 58.4% chance of an interest rate cut in March 2024.

Interest rate cuts may translate into lower opportunity cost of zero-yielding gold.

But despite what may currently seem like the wider market consensus on the sooner-than-expected rate cuts, the possibility of a higher-for-longer scenario might still on the table.


Non Farm Payrolls in focus

Investors are bracing themselves for Non Farm Payrolls reading to be published later today as it might have a crucial effect on XAUUSD.

A lower-than-expected reading (<180K) may confirm the decline in the economic activity and further reassure the market in the potential rate cuts in the early 2024.

However, a higher-than-expected reading (>180k) might sway the Fed to keep the rates elevated for a longer period.


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