Gold Price Forecast – Weaker NFP Underpins Gold, Brace for Buying!
Arslan Butt • 3 min read
During Monday’s early European trading session, the safe haven metal gold succeeded in extending its previous session bullish performance and drew some further bids around well above the $1,800 marks mainly due to Friday’s released disappointing U.S. monthly job data, which ultimately raised market expectations that the Fed will keep interest rates low for a longer period, which in turn, put some aggressive bearish pressure around the U.S. dollar and was seen as a key factor that provided a heavy lift to the dollar-denominated commodity. Moreover, the declines in the dollar were further bolstered by the market’s upbeat mood, which undermined demand for the safe-haven U.S. dollar and contributed to the yellow-metal gains.
Across the pond, the ongoing Brexit woes, the U.S. Colonial pipeline cyberattack, and increasing COVID-19 cases in Japan and India keep testing the market risk-on mood, which was seen as another key factor that provides some additional boost to the safe-haven-metal prices. On the bearish side, the prevalent upbeat market mood, triggered by the hopes of further stimulus from U.S. President Joe Biden and decreasing (COVID-19) cases in the West, turned out to be one of the key factors that kept the lid on any additional gains in the safe-haven-metal. In addition, the gains in the GOLD price were also capped by the reports suggesting that the E.U. signed a heavy deal with one of the global COVID-19 jab leaders, Pfizer-BioNTech, which put some positive impact on the market trading mood. As of writing, the bullion price is trading at 1,835.19 and consolidating in the range between 1,830.16 and 1,839.26. Moving on, the traders seem cautious to place any strong position ahead of the U.S. inflation data, including the Core Consumer Price Index, which is due later in the week.