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Gold stays below $4,250 as the dollar firms ahead of US jobs data
Investors are watching the US Nonfarm Payrolls release as traders price in an over 80% chance the Fed will raise borrowing costs by year end, a setup that supports the US dollar.
Gold (XAU/USD) is consolidating below $4,250 in Friday’s Asian session, after pausing the prior day’s retracement from its highest level since June 18, according to FXStreet.
Market participants are holding back on aggressive bets amid ongoing geopolitical uncertainty, which has supported safe-haven demand for the US dollar and is seen as capping gold’s upside.
FXStreet also points to elevated energy supply worries linked to developments involving Saudi Arabia, Iraq and the Houthis, which have helped crude retain Thursday’s gains and keep investors concerned about a renewed inflation push.
With traders using the CME Group FedWatch Tool to price in more than an 80% chance of a rate increase by the end of the year, FXStreet says the next catalyst is US jobs data, with analysts at OCBC calling the payroll report key to whether declines in yields, the dollar, and gold’s breakout can hold.
Latest closeGold $4,292.00 ▲1.1%|WTI crude $78.07 ▲3.8%