October 4, 2021

High Gold At The Beginning Of The Week, Can It Survive Here?

 The yellow gold metal touched a nearly two -week high at the start of the Asian session amid a weakening U.S. dollar and U.S. bond yields ahead of the release of the NFP report this week.

At the time of writing, gold is trading hovering at $ 1,760 an ounce, slightly down from the $ 1,765 price level recorded at the opening of the Asian session. Gold futures traded at $ 1,759 an ounce.

The greenback depreciated at the end of last week's trading following profit -taking by investors after driving the giant's rise to a one -year high.

The publication of the US NFP jobs report on Friday will be the main focus of the market this week, where it is expected to show an increase in September.

If the reading is positive, it will further boost expectations for investors for the Federal Reserve (Fed) to continue its asset purchase reduction plan in November.

Cleveland Fed President Loretta Mester said on Friday that the conditions for the central bank to raise interest rates will be met by the end of 2022 and she also expects inflation to find its target next year.