Free Trial

Heading For A Weekly Drop Ahead Of US Payrolls Data

GOLD

Gold is slightly higher in the Asia-Pac session, after closing 0.1% higher at $2043.65 on Thursday.

  • Bullion is poised for its first weekly drop in a month on increasing signs the Federal Reserve will be slower to start easing policy than was anticipated at the end of last year.
  • On Thursday, US Treasuries continued their recent cheapening trend, fueled by a rethink of aggressive rate hike bets, stronger data, profit-taking, and supply.
  • Cash US Treasuries finished 5-8bps cheaper, with the curve steeper, following higher-than-expected ADP Employment Change data (164k vs 125k est) and lower-than-expected Initial Jobless Claims (202k vs. 216k est). The market now awaits Non-Farm Payrolls data later today.
  • According to MNI’s technicals team, moving average studies are still in a bull-mode position despite the weakness seen this week. Key support lies at $1973.2, the Dec 13 low.

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.