Gold price dropped almost back to $1,900 on Thursday following the publication of a noticeably stronger-than-expected rise in private-sector employment in June in the US. Economists at Commerzbank analyze XAU/USD outlook.
Still robust US labour market could necessitate more pronounced rate hikes by the Fed
The still robust US labour market could necessitate more pronounced rate hikes by the US Federal Reserve. Yields on two-year US Treasuries reached 5.11% on Thursday, their highest level since June 2007, making Gold less attractive as a non-interest-bearing investment.
There is a risk that the Gold price will dip briefly below the $1,900 mark if US labour market data prove robust once again when published at 12:30 GMT.
See – Nonfarm Payrolls Preview: Banks see labour market still quite strong
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