Gold prices fell on Friday as the dollar index gained ground against a basket of major rivals following the monthly jobs data. — File photo
A strong-than-expected US nonfarm payrolls report on Friday is likely to weigh on gold prices this week, analysts say.
Gold prices fell on Friday as the dollar index gained ground against a basket of major rivals following the monthly jobs data. Spot gold dropped 3.6 per cent to $2,290.59 an ounce. Gold futures due in August tumbled 2.75 per cent, or $65.9 to $2325 an ounce, marking a loss of 0.9 per cent this week.
Gold also lost altitude after newswires reported that the People’s Bank of China paused its purchases in May after 18 months of nonstop buying.
Gold price shows more bearish bias to start pressing on $2300 barrier, reinforcing the expectations of continuing the bearish trend on the intraday basis. “Our waited target is located at $2272.06, while holding below $2340.10 represents the major condition for the continuation of the expected decline,” analysts at economies.com said in a note.
However, analysts stress that overall, the long-term bullish outlook for gold has not changed. From a technical standpoint, the key area of support remains around $2275, the May low and 0.382 Fibo of the run-up from February, according to Ole Hansen, head of commodities strategy at Saxo Bank.
The PBOC’s gold reserves remained at 72.80 million troy ounces. Recent trends show a reduction in the PBOC’s monthly purchases. “This shift in China’s demand poses a risk for gold bulls, suggesting potential declines. Meanwhile, UBS has revised its gold price forecast for 2024 to $2,365, with a year-end target of $2,600 and a projection of prices exceeding $2,800 over the next two years,” Vijay Valecha, Chief Investment Officer at Century Financial, stated.
Generally, a strong US dollar (due to a strong US jobs report) can put downward pressure on gold prices. “This is because gold is often seen as an alternative investment to the US dollar, and when the dollar strengthens, investors might be less inclined to buy gold,” Mohamed Hashad, Chief Market Strategist at Noor Capital, explained.
The article highlights the impact of the US nonfarm payrolls report on gold prices, indicating a decline in response to the stronger dollar. Despite short-term bearish trends, analysts maintain a positive long-term outlook for gold, with key support levels and potential price projections.
Gold prices fell on Friday as the dollar index gained ground against a basket of major rivals following the monthly jobs data. — File photo
A strong-than-expected US nonfarm payrolls report on Friday is likely to weigh on gold prices this week, analysts say.
Gold prices fell on Friday as the dollar index gained ground against a basket of major rivals following the monthly jobs data. Spot gold dropped 3.6 per cent to $2,290.59 an ounce. Gold futures due in August tumbled 2.75 per cent, or $65.9 to $2325 an ounce, marking a loss of 0.9 per cent this week.
Gold also lost altitude after newswires reported that the People’s Bank of China paused its purchases in May after 18 months of nonstop buying.
Gold price shows more bearish bias to start pressing on $2300 barrier, reinforcing the expectations of continuing the bearish trend on the intraday basis. “Our waited target is located at $2272.06, while holding below $2340.10 represents the major condition for the continuation of the expected decline,” analysts at economies.com said in a note.
However, analysts stress that overall, the long-term bullish outlook for gold has not changed. From a technical standpoint, the key area of support remains around $2275, the May low and 0.382 Fibo of the run-up from February, according to Ole Hansen, head of commodities strategy at Saxo Bank.
The PBOC’s gold reserves remained at 72.80 million troy ounces. Recent trends show a reduction in the PBOC’s monthly purchases. “This shift in China’s demand poses a risk for gold bulls, suggesting potential declines. Meanwhile, UBS has revised its gold price forecast for 2024 to $2,365, with a year-end target of $2,600 and a projection of prices exceeding $2,800 over the next two years,” Vijay Valecha, Chief Investment Officer at Century Financial, stated.
Generally, a strong US dollar (due to a strong US jobs report) can put downward pressure on gold prices. “This is because gold is often seen as an alternative investment to the US dollar, and when the dollar strengthens, investors might be less inclined to buy gold,” Mohamed Hashad, Chief Market Strategist at Noor Capital, explained.
The article highlights the impact of the US nonfarm payrolls report on gold prices, indicating a decline in response to the stronger dollar. Despite short-term bearish trends, analysts maintain a positive long-term outlook for gold, with key support levels and potential price projections.
