Gold Price Forecast: There will be more selling pressure for XAU/USD – TDS
|Gold climbed to its highest level since early January above $2,060 but corrected sharply lower following strong US labour market report. Economists at TD Securities analyze the yellow metal’s outlook.
XAU/USD could trend down toward $2,005-$2,014 support
The January US jobs report outperformed expectations, with employment increasing nearly double consensus, and wages surging. This drove Gold down to $2,030, from around $2,060 previously. We suspect there will be more selling pressure for Gold, as a result of the robust data.
It would not be a surprise to see the yellow metal trend down toward $2,005-$2,014 support.
Despite this, we do still expect the Fed to cut rates in May (and for markets this will dispel hopes for an earlier March cut), and along with strong central bank and Asian physical buying, prices should rebound higher. As such, we continue to be happy with our projection of $2,200 in the next quarter.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.