Gold’s slide is set to deepen this week to below $1,270 an ounce if Friday’s closely watched U.S. jobs report signals improving labor market growth, CNBC’s latest survey of traders and strategists has found.
“The biggest economy of the world is on a continuous path of recovery and this is a bearish signal for gold,” said Naeem Aslam, chief market analyst at Ava Trade. “We have consistently said that we need to break above the $1,400 mark for any serious bull speculation to develop.”
Almost two-thirds of respondents in a CNBC survey (65 percent or 15 out of 23) said the price of gold will decline this week. About 22 percent said prices will be unchanged while just three respondents, or 13 percent, forecast gains.
If this week’s U.S. key economic numbers for March are positive, they could fuel a dollar rally and boost stocks but undermine gold’s safe-haven appeal.
Importantly, the March figures should be largely free of the distortions caused by recent extreme winter weather, and will likely show resilience in the broader economy.
Upbeat data may encourage the Federal Reserve to exit its bond-buying program and raise interest rates sooner than expected.
via CNBC
Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at info@marketpulse.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.
Alfonso Esparza
trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Latest posts by Alfonso Esparza (see all)
- Market Rally Still Going Low Holiday Volumes Awaiting Start of 2020 - 27 December 2019
- Market Awaits China Retaliation on Trade - 29 November 2019
- Alibaba to Close Order Book Ahead of Huge IPO - 18 November 2019