Despite the US non-farm payrolls data released last Friday, which came in far below expectations and the previous figure of 29,000, this disappointing employment data only provided a brief boost to gold prices. Prices subsequently fell rapidly, dropping more than $102 from the day’s high before stabilizing. This was mainly because while the poor non-farm payrolls data reduced investor expectations of a Federal Reserve rate hike, persistently high US bond yields led market participants to prioritize concerns about the US inflation outlook over the assumption that the Fed might not raise rates significantly.

However, as investors digest the consistently disappointing non-farm payrolls data, the expectation that the Fed will avoid aggressive rate hikes will gradually resurface, potentially providing upward momentum for gold prices from their lows.

Gold prices may fluctuate between $4,097 and $4,192 in the short term. Pay close attention to the lower end of the range for potential buying opportunities. There is room for a rebound in the short term. $4,077 can be used as an important price defense reference level. Be sure to take appropriate risk precautions.

Risk Warning: This article is for market analysis purposes only. Price ranges and levels mentioned are for market observation and do not constitute investment advice. Precious metal prices are highly volatile; please make independent and prudent decisions and manage your own risk.

Gold price chart (1 hour):

Ferris Kwok

Chief Analyst
Success Finance Group

Email: ferris.kwok@successfn.com