Metals: Gold’s decline pauses ahead of US payrolls report
Gold was near its lowest level in seven months on Friday. This came as bond yields and the US dollar, both of which had reached record highs earlier this week, slowed down. Investors also awaited US data regarding non-farm employment, which could have an impact on interest rates.
Spot gold was at $1.819.60 and on track for a second successive weekly loss of 1.6%. US gold futures increased by 0.1%, to $1,834.
The benchmark US 10-year bond rate fell from its 16-year high, while the US dollar remained at a 12-week winning streak.
Market Expectations for US Job Data
“I think the market doesn’t quite have conviction to keep going at this point until the US jobs data comes out,” said Ilya Spivak, head of global macro, Tastylive.
After a number of job indicators released during the week, markets await the release at 1230 GMT of US non-farm employment data.
“Inflation is multifaceted. To reduce the likelihood of interest rates not going up, we would need to see significantly more unemployment and a much lower energy price,” said Michael Langford, chief investment officer at Scorpion Minerals Ltd.
Federal Reserve’s View on Treasury Yields
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