Gold Prices Move Higher As Market Participants Turn Cautious Ahead Of Key US Jobs Data
Gold (XAU/USD) attracted some dip buyers during the Asian session on Friday (May 2) and seemed to extend its overnight up-move from the $3,200 range, or over two-week lows. The uptick could be attributed to some repositioning trade ahead of today’s release of the closely watched US Nonfarm Payrolls (NFP) report. The crucial jobs data could provide fresh insights into the Federal Reserve’s (Fed) policy outlook, which in turn, will play a key role in influencing the near-term US Dollar (USD) price dynamics and provide a fresh impetus to the non-yielding yellow metal.
Ahead of the key risk data, signs of a potential de-escalation in the trade war between the US and China – the world’s two largest economies – might continue to act as a headwind for the safe-haven Gold. Meanwhile, the USD hovered near a three-week high touched on Thursday and might further contribute towards capping gains for the commodity. Hence, it would be prudent to wait for a strong follow-through buying before confirming that the XAU/USD pair’s corrective slide from the $3,500 mark, or all-time tops is over and positioning for any further gains.
Source: FXStreet