Gold futures rallied last week amid technical factors pointing to oversold and the lack of nedollars on the US Fed’s next monetary policy move, experts say. Gold was supported by lower US Treasury yields, but gains may be capped by a stronger dollar, according to one analyst. Friday’s price action suggests the direction of the market this week will be determined by these two factors as investors continue to digest the details of the latest US Non-Farm Payrolls report. So, what levels will be seen this week? Here is analyst James Hyerczyk’s gold prediction
What affected the gold price?
One reason gold prices may be supported this week, according to market analyst James Hyerczyk, is that Friday’s report did not significantly change the Fed’s current outlook for rate hikes. The report showed that the US labor market is still far from its mandate to establish “full employment”. Gold prices rose as US Treasuries fell. One reason for the weak yields was the June employment report, which showed a slight increase in the unemployment rate.
Job growth rose in June, with nonfarm payrolls rising by 850,000, the US Labor Department reported on Friday. The figure was higher than the Dow Jones forecast of 706,000 and better than the 583,000 revised upwards in May. However, the unemployment rate rose to 5.9% from 5.8% in the previous month. The analyst also pointed out that the dollar’s rise to the highest level in the last three months may have limited the gold gains last week.
Here is the analyst’s weekly gold forecast
According to Hyerczyk, last week’s short-term rally may continue. But he said gains are likely to be limited as we approach August, as market participants anticipate the central bank meeting at that time when the Fed will begin reducing stimulus. The analyst said this week that the focus of traders will be on the minutes of the Fed’s June meeting (to be released on Wednesday). For more gold news Cryptocoin. com, which we prepared as ” Analyst: Yellow Gold Price May See These Levels In The Coming Days!” You can review our article.
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