<\/p>\n
\n Share:<\/span><\/p>\n <\/p>\n Gold price (XAU\/USD) attracts some buyers for the second successive day on Friday and sticks to its modest intraday gains heading into the European session. Bets that the Federal Reserve (Fed) is nearing the end of its policy-tightening campaign and start cutting rates in June 2024 keep the US Dollar (USD) bulls on the defensive. This, along with unrest in the Middle East and concerns about a slowdown in the Chinese economy, acts as a tailwind for the safe-haven precious metal.<\/p>\n The intraday uptick, however, lacks bullish conviction, with the Gold price remaining below the $2,000 psychological mark in the wake of a generally positive tone around the equity markets. Investors also seem reluctant to place aggressive bets and prefer to wait on the sidelines ahead of the monthly employment details from the United States (US). The popularly known NFP report could provide cues about the Fed’s rate-hike path and provide a fresh directional impetus to the XAU\/USD.<\/p>\n From a technical perspective, nothing seems to have changed much for the Gold price and any subsequent move up is more likely to confront stiff resistance near the $2,000 mark. The next relevant hurdle is pegged near the $2,008-2,010 area, or the multi-month peak touched last Friday. Bulls need to wait for a sustained strength beyond the said barrier before positioning for a move towards the next relevant barrier near the $2,022 region.<\/p>\n On the flip side, the $1,980 region now seems to protect the immediate downside ahead of the weekly low, around the $1,970 level set on Wednesday. Some follow-through selling might expose the $1,964 intermediate support before the Gold price eventually drops to the $1,954-1,953 region.<\/p>\n The table below shows the percentage change of US Dollar (USD) against listed major currencies this week. US Dollar was the weakest against the New Zealand Dollar.<\/p>\n The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the Euro from the left column and move along the horizontal line to the Japanese Yen, the percentage change displayed in the box will represent EUR (base)\/JPY (quote).<\/p>\n<\/div>\n <\/p>\n Nonfarm Payrolls (NFP) are part of the US Bureau of Labor Statistics monthly jobs report. The Nonfarm Payrolls component specifically measures the change in the number of people employed in the US during the previous month, excluding the farming industry.<\/p>\n<\/section>\n The Nonfarm Payrolls figure can influence the decisions of the Federal Reserve by providing a measure of how successfully the Fed is meeting its mandate of fostering full employment and 2% inflation. Nonfarm Payrolls generally have a positive correlation with the US Dollar. This means when payrolls\u2019 figures come out higher-than-expected the USD tends to rally and vice versa when they are lower. Nonfarm Payrolls are generally negatively-correlated with the price of Gold. This means a higher-than-expected payrolls\u2019 figure will have a depressing effect on the Gold price and vice versa. Nonfarm Payrolls is only one component within a bigger jobs report and it can be overshadowed by the other components. <\/div>\n<\/p><\/div>\n","protected":false},"excerpt":{"rendered":" Share: Gold price trades with a positive bias for the second straight day, albeit lacks follow-through.\u00a0 A positive risk tone caps gains for the metal amid the uncertainty over the Fed\u2019s rate-hike path. Traders now look to the crucial US Nonfarm Payrolls (NFP) data for some meaningful impetus. Gold price (XAU\/USD) attracts some buyers for […]<\/p>\n","protected":false},"author":2,"featured_media":15459,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[173],"tags":[201,248,251,246,351,257,366,484,255,250,1380,252,247,253,249,5212,256,254],"class_list":["post-186500","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-others","tag-blockchain","tag-bsc","tag-chainlink","tag-coin","tag-commodities","tag-cryptocurrency","tag-fed","tag-gold","tag-gta","tag-looks-rare","tag-nfp","tag-oracle","tag-polygon","tag-quickswap","tag-safe-moon","tag-seo","tag-wallet","tag-wordpress"],"_links":{"self":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/186500","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/comments?post=186500"}],"version-history":[{"count":2,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/186500\/revisions"}],"predecessor-version":[{"id":186502,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/186500\/revisions\/186502"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media\/15459"}],"wp:attachment":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media?parent=186500"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/categories?post=186500"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/tags?post=186500"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}\n
Daily Digest Market Movers: Gold price extends its sideways consolidative price move on Friday<\/h2>\n
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Technical Analysis: Gold price needs to move back above the $2,000 mark to lure buyers\u00a0<\/h2>\n
US Dollar price this week<\/h2>\n
\n\n
\n \u00a0<\/td>\n USD<\/strong><\/td>\n EUR<\/strong><\/td>\n GBP<\/strong><\/td>\n CAD<\/strong><\/td>\n AUD<\/strong><\/td>\n JPY<\/strong><\/td>\n NZD<\/strong><\/td>\n CHF<\/strong><\/td>\n<\/tr>\n \n USD<\/strong><\/td>\n \u00a0<\/td>\n -0.59%<\/td>\n -0.70%<\/td>\n -0.90%<\/td>\n -1.43%<\/td>\n 0.42%<\/td>\n -1.51%<\/td>\n 0.40%<\/td>\n<\/tr>\n \n EUR<\/strong><\/td>\n 0.58%<\/td>\n \u00a0<\/td>\n -0.11%<\/td>\n -0.31%<\/td>\n -0.84%<\/td>\n 1.00%<\/td>\n -0.93%<\/td>\n 0.97%<\/td>\n<\/tr>\n \n GBP<\/strong><\/td>\n 0.70%<\/td>\n 0.12%<\/td>\n \u00a0<\/td>\n -0.23%<\/td>\n -0.74%<\/td>\n 1.12%<\/td>\n -0.82%<\/td>\n 1.09%<\/td>\n<\/tr>\n \n CAD<\/strong><\/td>\n 0.92%<\/td>\n 0.30%<\/td>\n 0.20%<\/td>\n \u00a0<\/td>\n -0.52%<\/td>\n 1.30%<\/td>\n -0.61%<\/td>\n 1.28%<\/td>\n<\/tr>\n \n AUD<\/strong><\/td>\n 1.39%<\/td>\n 0.85%<\/td>\n 0.73%<\/td>\n 0.51%<\/td>\n \u00a0<\/td>\n 1.83%<\/td>\n -0.08%<\/td>\n 1.82%<\/td>\n<\/tr>\n \n JPY<\/strong><\/td>\n -0.42%<\/td>\n -1.00%<\/td>\n -1.05%<\/td>\n -1.35%<\/td>\n -1.87%<\/td>\n \u00a0<\/td>\n -1.95%<\/td>\n -0.02%<\/td>\n<\/tr>\n \n NZD<\/strong><\/td>\n 1.50%<\/td>\n 0.91%<\/td>\n 0.80%<\/td>\n 0.61%<\/td>\n 0.08%<\/td>\n 1.90%<\/td>\n \u00a0<\/td>\n 1.88%<\/td>\n<\/tr>\n \n CHF<\/strong><\/td>\n -0.40%<\/td>\n -0.99%<\/td>\n -1.10%<\/td>\n -1.30%<\/td>\n -1.83%<\/td>\n 0.02%<\/td>\n -1.92%<\/td>\n \u00a0<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n Nonfarm Payrolls FAQs<\/h2>\n
A relatively high NFP figure means more people are in employment, earning more money and therefore probably spending more. A relatively low Nonfarm Payrolls\u2019 result, on the either hand, could mean people are struggling to find work.
The Fed will typically raise interest rates to combat high inflation triggered by low unemployment, and lower them to stimulate a stagnant labor market.<\/p>\n<\/section>\n
NFPs influence the US Dollar by virtue of their impact on inflation, monetary policy expectations and interest rates. A higher NFP usually means the Federal Reserve will be more tight in its monetary policy, supporting the USD.<\/p>\n<\/section>\n
Higher NFP generally has a positive effect on the value of the USD, and like most major commodities Gold is priced in US Dollars. If the USD gains in value, therefore, it requires less Dollars to buy an ounce of Gold.
Also, higher interest rates (typically helped higher NFPs) also lessen the attractiveness of Gold as an investment compared to staying in cash, where the money will at least earn interest.<\/p>\n<\/section>\n
At times, when NFP come out higher-than-forecast, but the Average Weekly Earnings is lower than expected, the market has ignored the potentially inflationary effect of the headline result and interpreted the fall in earnings as deflationary.
The Participation Rate and the Average Weekly Hours components can also influence the market reaction, but only in seldom events like the \u201cGreat Resignation\u201d or the Global Financial Crisis.<\/p>\n<\/section>\n<\/div>\n