Safe Haven Gold Bullish Ahead of US NFP Release
Early on Friday, gold is trading bullish, boosted by a weakness in the US dollar as well as in global equity markets, as the coronavirus crisis supports the safe haven appeal of the yellow metal. At the time of writing, GOLD is trading at a little above $1,938.
Despite the current strength, gold is set to post a weekly loss of around 1.5% so far this week, as a result of an improvement in the risk sentiment of global markets. Later today, the release of the US NFP data could drive moves in the precious metal, especially if the figures are significantly different from the forecast.
Gold prices also received a boost after Chicago Fed President Charles Evans urged Congress to roll out more financial aid even as it hinted that interest rates could continue to remain low for an extended period of time. Evans’s statements reaffirm Fed chairman Jerome Powell’s recent speech at the Jackson Hole symposium where he revealed a shift in the central bank’s strategy to tackle weakness in the US economy.
On Thursday, the weekly jobless claims report revealed that the number of people filling for unemployment benefits fell below the 1 million level for the second consecutive week. However, this failed to dent the demand for gold as the US labor market is yet to recover to pre-pandemic levels even after the lifting of lockdown measures.
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