- A modest USD pullback helped gold regain some positive traction on Friday.
- Mixed US employment data failed to impress USD bulls or provide any boost to the metal.
- By raising US bond yields, market optimism could limit any significant gains.
The oro it kept its modest daily earnings at around $ 1,800 and had a rather subdued reaction to the US mixed monthly employment report.
A combination of factors did not help the precious metal to preserve its initial gains, but instead triggered further selling in the $ 1,811-12 zone. Market optimism was seen as one of the key factors limiting the company’s earnings. XAU / USD as a safe haven. Aside from this, a sudden spike in US Treasury yields put some pressure on the nonperforming yellow metal.
The bond market has been reacting to the prospects of a huge US fiscal stimulus. This, coupled with better-than-expected monthly US employment details, pushed the benchmark 10-year government bond yield to nearly a year high. The report showed that the unemployment rate fell to 6.3% in January from estimates that point to a steady reading of 6.7%.
The positive figure, to a greater extent, was offset by a slight disappointment from NFP headlines that the US economy added 49,000 new jobs compared to 50,000 expected. This, in turn, kept the US dollar bulls on the defensive and extended some support to dollar-denominated commodities, at least for the time being.
With Friday’s key data out of the way, it will now be interesting to see if the XAU / USD is able to capitalize on the modest gains or finds a new offering at higher levels. Nonetheless, widespread market risk sentiment, US bond yields, and USD price dynamics would continue to play a key role in commodity influence.
Technical levels
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