October 7, 2021

Beware Of The Calm Movement Of Gold

 The yellow gold metal continued to hover around the same price as investors took a cautious approach ahead of the release of the U.S. NFP jobs report on Friday.

Earlier, investors were shown stronger -than -expected US private sector ADP employment data readings in September.

This further boosts market confidence to see a similar increase in NFPs and supports hopes for a reduction in asset purchases by the Federal Reserve (Fed) to be implemented soon.

The US dollar strengthened to a one -year high following this reading, before falling back following Minority Leader Mitch McConnell's statement on the US debt ceiling which again pushed the currency's depreciation and US bond yields.

Following that, gold took advantage of the opportunity to rebound in the New York session. In today's Asian session, gold traded at $ 1,758 per ounce, while gold futures hovered at $ 1,759 per ounce.

Overall, gold trading has been seen moving flat since the beginning of the week amid investor vigilance while awaiting US NFP jobs data.