Gold price falls on strong US Nonfarm Payrolls yet is poised for weekly advance
Gold price extended its losses for the second consecutive day on Friday but is poised to finish the week with gains of over 1.30% after the latest Nonfarm Payrolls report in the United States (US) was solid, pressuring traders to trim their bets that the Federal Reserve (Fed) will ease monetary policy. At the time of writing, the XAU/USD trades at $3,316, down 0.84%.
The US Bureau of Labor Statistics (BLS) revealed that the labor market remains resilient as the Unemployment Rate figures remained unchanged compared to April. In the meantime, Wall Street recovers some of its Thursday losses amid the ongoing feud between US President Donald Trump and Tesla CEO Elon Musk, spurred by the House of Representatives' approval of the US debt ceiling increase.
Bullion prices took a hit as the buck showed signs of life, climbing 0.49% as depicted by the US Dollar Index (DXY). The move was sponsored by investors adjusting their estimates of the Fed rate cut and higher US Treasury bond yields.
Although Gold is taking a hit, heightened tensions between Russia and Ukraine and the prolonged conflict between Israel and Hamas could still drive prices higher.
Next week, the US economic docket will be absent of Fed speakers as they enter the blackout period ahead of the June 17-18 meeting. Traders would be eyeing Consumer Price Index (CPI) figures, followed by the Producer Price Index (PPI) and the University of Michigan Consumer Sentiment.
Source: FXstreet
