Gold price sticks to modest gains, lacks bullish conviction ahead of US NFP report
Gold price (XAU/USD) stages a goodish intraday bounce from a one-and-half-week low touched during the Asian session on Friday and currently trades near the top end of its daily range, around the $2,640 level. Bets that the Federal Reserve (Fed) will lower borrowing costs at its December policy meeting keep the US Dollar (USD) bulls on the defensive near a multi-week low. This, along with persistent geopolitical risks stemming from the protracted Russia-Ukraine war and the ongoing conflicts in the Middle East, along with concerns about Trump's tariff plans and a softer risk tone, offer some support to the safe-haven precious metal.
The intraday move up in the Gold price, however, lacks follow-through as traders seem reluctant to place directional bets and opt to wait for the release of the US Nonfarm Payrolls (NFP) report. The closely watched US jobs data will be looked upon for the interest rate outlook in the US and guide the Fed policymakers on their next monetary policy decision later this month. This, in turn, will play a key role in influencing the near-term USD price dynamics and provide some meaningful impetus to the non-yielding bullion. Nevertheless, the XAU/USD, at current levels, seems poised to register losses for the second straight week.(Cay)
source: FXstreet
