The post Gold price extends its consolidative price move as traders await US NFP on Friday appeared on BitcoinEthereumNews.com.

Gold price remains confined in a narrow trading band held over the past three days. A softer risk tone and bets for a Fed rate cut in March 2024 continue to lend support. The USD stands tall near a two-week top and caps gains ahead of US NFP on Friday. Gold price (XAU/USD) trades with a mild positive bias during the Asian session on Thursday, albeit lacks follow-through and remains confined in a narrow range held over the past three days. The weaker JOLTS Job Openings data from the United States (US) on Tuesday, followed by the softer ADP report on Wednesday reinforced expectations that interest rates may soon start to fall, dragging the benchmark 10-year US Treasury yield to its lowest level in three months. Furthermore, dovish rhetoric from European Central Bank (ECB) officials, the Reserve Bank of Australia’s (RBA) and the Bank of Canada’s (BoC) decision to hold rates steady on Tuesday and Wednesday, respectively, lifted hopes for a peak in rates globally. This, in turn, is seen as a key factor acting as a tailwind for the non-yielding yellow metal. Meanwhile, evidence that the US jobs market is starting to slow fuels concerns about an economic downturn, which, along with the intensifying Israel-Hamas conflict, tempers investors’ appetite for riskier assets. This turns out to be another factor lending some support to the safe-haven Gold price. The upside, however, remains capped in the wake of the recent US Dollar (USD) rally to a two-week high, which tends to undermine demand for the XAU/USD. Traders also seem reluctant to place fresh directional bets and prefer to wait on the sidelines ahead of the US monthly employment data, or the Nonfarm Payrolls (NFP) report on Friday. In the meantime, traders might take cues from Thursday’s release of the US Weekly…

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Filed under: News - @ December 7, 2023 6:22 am