Buoyant US data put pressure on Gold. Strategists at Commerzbank analyze the yellow metal’s outlook.
Weaker-than-expected NFP could trigger a noticeable countermovement
With a significantly higher-than-expected ISM manufacturing index and a surprisingly pronounced rise in job vacancies – there appears to be no end to the series of positive US economic data. Gold is under considerable pressure accordingly.
That said, caution is warranted in view of the latest steep rise in US bond yields and the resulting marked slump in the price of Gold. It would not be surprising if this trend were to gradually run out of steam.
What is more, another data heavyweight is due to be published this week – the US labour market report: if the figures turn out to be weaker than expected, it could trigger a noticeable countermovement. There is a good chance in other words that Gold will bottom out until then at just shy of $1,820.
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