Gold Sinks Lower With Traders Booking Profit After Steep Rally Last Week
Gold’s price (XAU/USD) sees some broad profit taking and drops by 1% and halts its four-day winning streak on Monday as markets catch up and reprice the recent US Nonfarm Payrolls release. The report further confirms the narrative that the Federal Reserve (Fed) might keep its policy rate higher for longer. While higher borrowing costs are typically negative for the non-interest-bearing precious metal, investors are bracing for more volatility ahead of President-elect Donald Trump’s return to the White House on January 20.
On the economic data front, there is a relatively calm trading day ahead, with the dust settling further after the recent US Nonfarm Payrolls release. This Monday, the US Treasury will allocate some short-term bonds to the market.
Source : FXStreet