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Ended Last Week On A Poor Note After Hitting An All-Time High On Monday

GOLD

Gold is 0.4% lower in the Asia-Pac session, after closing 1.2% lower at $2004.67 on Friday.

  • Bullion was lower on Friday after stronger-than-expected US jobs data reduced expectations of US interest-rate cuts early next year.
  • The change in Nonfarm Payrolls was +199k vs. 183k estimate and +150k prior, while the Unemployment Rate dipped to 3.7% vs. 3.9% estimate. Moreover, Average Hourly Earnings growth was hotter than expected (+0.4% m/m vs. +0.3% est. & +0.2% prior).
  • The US Treasury 2-year finished 13bps cheaper at 4.72%, while the 10-year yield increased 8bps to 4.23%.
  • Investors will be watching US inflation data on Tuesday, ahead of the Fed’s final rate decision of the year the following day.
  • According to MNI’s technicals team, gold pushed through support at $2007.5 (20-day EMA) to open $1975.0 (50-day EMA). It is worth noting that last week started with a spike to an all-time high of $2135.39.

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