Sitting 5% Below Its Recent All-Time High Ahead OF US Payrolls

Gold is slightly lower in the Asia-Pac session, after closing 0.7% lower at $2303.83 on Thursday.

• The price of the yellow metal has declined by approximately 5% since reaching its peak in mid-April.
• Thursday's movement partly counteracted the 1.5% surge triggered by comments from Fed Chair Powell and the FOMC statement, which were perceived as less hawkish than anticipated.
• As US Treasuries extended their post-FOMC rally, the reversal in bullion's price suggests that Wednesday's movement might have been an overreaction.
• The market’s focus now turns to US Non-Farm Payrolls later today. Bloomberg consensus sees nonfarm payrolls growth of 241k in April after another strong 303k in March. See MNI US Payrolls Preview: Fed Sensitive To An Unexpected, Meaningful Weakening here.
• According to MNI’s technicals team, gold again breached initial support at $2291.6, the Apr 23 low. A continuation lower would signal scope for an extension towards $2245.2, the 50-day EMA.