Gold futures rallied last week, according to experts, amid technical factors suggesting a high-sell and lack of clarity on the US Fed’s next monetary policy move. Gold has been supported by lower US Treasury yields, but profits may be capped by a stronger dollar, according to one analyst. Friday’s price action suggests these two factors will determine the market’s direction this week as investors continue to digest the details of the latest US Non-Farm Payrolls report. So, what levels will be seen this week? Here is analyst James Hyerczyk’s gold claim
What affected gold prices?
One reason gold prices may be supported this week, according to market analyst James Hyerczyk, is that Friday’s report did not significantly change the Fed’s current outlook for rate hikes. The report showed that the US labor market is still far from its mission to establish “full employment”. Gold prices rose as US Treasuries fell. One reason for the weakness in yields was the June employment report, which showed a slight increase in the unemployment rate.
Employment growth rose in June, with nonfarm payrolls rising by 850,000, the US Department of Labor reported on Friday. The number was higher than the Dow Jones claim of 706,000, and more adequate than the top-revised 583,000 in May. However, the unemployment rate rose to 5.9% from 5.8% in the previous month. The analyst also pointed out that the dollar’s rise to the highest level of the last three months may have ended last week’s gold interests.
Here is the analyst’s weekly gold claim
According to Hyerczyk, last week’s short-term rally may continue. However, he said it is possible that gains will be limited as we approach August, as market participants are waiting for the central bank meeting at that time when the Fed will begin to reduce stimulus. The analyst said this week that the focus of traders will be on the minutes of the Fed’s June meeting (to be released on Wednesday). For more gold news Cryptocoin. com, which we prepared as ” Analyst: Gold Prices May See These Levels In The Coming Days!” You can review our article.
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