Gold Remains Bullish After Weak US NFP Data
Gold prices, or XAU/USD, maintained a bullish bias for the third consecutive day in Friday's European trading session. The precious metal hovered near its highest level in a week and a half and is poised to record its first weekly gain in five weeks.
Market participants are now eyeing the opportunity for gold to break through the US$4,200 per ounce level. A move above this level is considered to open room for a continued recovery in gold prices from their lowest level since November 2025.
Major support for gold came after the release of weaker-than-expected US employment data. The Nonfarm Payrolls (NFP) report showed the US economy added only 57,000 new jobs in June, lower than the market estimate of 110,000. The previous month's data was also revised down from 172,000 to 129,000, while the unemployment rate fell slightly to 4.2%.
The data reinforces the view that the US labor market is beginning to soften. This situation has led market participants to reduce expectations for a Fed rate hike, thereby depressing the US dollar and supporting demand for non-yielding gold.
However, gold's gains may still be restrained by geopolitical uncertainty, particularly regarding talks between the United States and Iran. Risks in the Strait of Hormuz and concerns about a potential escalation of conflict continue to maintain demand for the US dollar as a safe-haven asset. Furthermore, trading volume is expected to be lower as US stock and bond markets are closed for Independence Day. (gn)*
Source: Newsmaker.id
