The dollar suffered losses against the rest of G10 yesterday
Ichimoku Kinko Hyo GBP/JPY: The GBP/JPY pair is trading within the cloud…
Gold Awaits US Jobs Data
Information is not investment advice
During this week gold has been consolidating in the $1807-$1820 range waiting for the US jobs data announcement. After the past release on August 6, gold fell by almost 6%.
Why is it so important?
Last week, Fed Chair Jerome Powell acknowledged in his remarks at the Jackson Hole symposium that tapering could begin this year, but the Fed will remain cautious in its decision to raise interest rates.
The labor market is one of the main indicators of the US economic health, which recovery can push the Federal Reserve to start pandemic stimulus tapering and interest rates increasing.
While gold is considered a hedge against inflation and currency debasement, caused by massive stimulus measures, higher interest rates can weaken investors’ interest in gold.
Technical analyses
4H Chart
Gold did not show an expected response to the dovish Powell’s speech. It means markets recognize that the direction for policy is now starting to wind back stimulus. In this case, any hawkish statement can weaken gold and sent it down to $1700 in a couple of hours. In this case, it looks risky to open any trades before the jobs data announcement.
- If the jobs data announcement is better than expected, the gold will drop with a target of $1730.
- If the jobs data announcement is worse than expected, the gold will rise with a target of $1830.
Kirill Belyaev
Similar
Asian markets are following the rebound trail this morning
Ichimoku Kinko Hyo NZD/JPY: The NZD/JPY pair is trading above the cloud…
Tech stocks added 2.1% to lead gains
Ichimoku Kinko Hyo CHF/JPY: The CHF/JPY pair is now poised to test the lower level of the cloud…
Popular
Brent Will Reach $95
What is happening? The global energy crisis spreads around the globe…
3 Forex Pairs to Trade Right Now
The year started only a couple of weeks ago, but we already have a lot of fascinating movements in various trading instruments. To help you in trading, we choose several forex pairs that may surprise you and plunge greatly in a short period.
Will US inflation calm down in 2022?
Breaking news: coronavirus won't be the number one enemy of the global economy in 2022…
Choose your payment system
