This is how gold looked before the NFP shock!
Gold prices (XAU/USD) remained on the defensive in Monday's trading, after briefly rising slightly in the Asian session to above $4,100/oz. Sellers exploited this strengthening, putting pressure on gold for the third consecutive day. The primary reason was that market participants began to reduce expectations for a Fed rate cut in December, which strengthened the US dollar and curbed the movement of non-yielding gold.
However, gold's weakness has so far been limited. Market concerns about a slowing US economy following the longest government shutdown in history have kept the door open for future Fed policy easing. Furthermore, weaker risk sentiment has kept gold, a safe-haven asset, buying at the lower end, keeping its price above the low of around $4,032 established last Friday.
For now, many traders are adopting a wait-and-see approach. Market focus is now on the FOMC meeting minutes due to be released Wednesday, which could provide clearer signals regarding the Fed's outlook on inflation and growth.
Furthermore, the delayed US Nonfarm Payrolls (NFP) data for October, due to be released on Thursday, is also expected to be the next major trigger. This employment figure has the potential to significantly move the US dollar—and will ultimately determine whether gold will remain stuck in defensive mode or rebound from current pressure. (asd)
Source: Newsmaker.id
