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GOLD: Weaker On Friday Despite Weak US Payrolls, Higher Yields Weigh

GOLD
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Gold is 0.2% higher in today’s Asia-Pac session, after closing 0.3% lower at $2736.53 on Friday. 

  • On Friday, US Nonfarm payrolls increased 12K in October, well below the consensus expectation for a 101k gain, with hurricanes, strikes along with a shortened survey period contributing factors. In addition, there were downward revisions totalling 112k for the previous two months.
  • US Treasuries and the USD Dollar saw a large intra-day swing in Friday’s NY session. Yields dropped immediately after the payrolls data, with the 2-year traded from 4.21% to a low of 4.06% before reversing course to end the session at 4.21%. The US 10-year yield closed 10bp higher at 4.38%, a new high for the move that began in September.
  • The bounce off yield lows was aided by higher than expected S&P Global US Manufacturing PMI, Construction Spending and ISM prices paid data.
  • Looking ahead, the US Presidential Election on Tuesday and the FOMC decision unusually on a Thursday are two major risk events in an otherwise light US calendar.
  • The presidential race appears close with seven swings states likely to determine who wins the White House. Over the weekend, the national average polls tightened, and those states remain on a knife edge.
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Gold is 0.2% higher in today’s Asia-Pac session, after closing 0.3% lower at $2736.53 on Friday. 

  • On Friday, US Nonfarm payrolls increased 12K in October, well below the consensus expectation for a 101k gain, with hurricanes, strikes along with a shortened survey period contributing factors. In addition, there were downward revisions totalling 112k for the previous two months.
  • US Treasuries and the USD Dollar saw a large intra-day swing in Friday’s NY session. Yields dropped immediately after the payrolls data, with the 2-year traded from 4.21% to a low of 4.06% before reversing course to end the session at 4.21%. The US 10-year yield closed 10bp higher at 4.38%, a new high for the move that began in September.
  • The bounce off yield lows was aided by higher than expected S&P Global US Manufacturing PMI, Construction Spending and ISM prices paid data.
  • Looking ahead, the US Presidential Election on Tuesday and the FOMC decision unusually on a Thursday are two major risk events in an otherwise light US calendar.
  • The presidential race appears close with seven swings states likely to determine who wins the White House. Over the weekend, the national average polls tightened, and those states remain on a knife edge.