Gold prices dropped due to strong US jobs data, while Euro weakened against USD

From Investing.com: 2024-10-07 05:04:00

Gold prices dropped sharply on Friday after a strong US Nonfarm Payroll report, but eventually stabilized at $2,650. The robust jobs data reduced worries about an economic slowdown, leading to lower chances of aggressive rate cuts by the Fed. Meanwhile, China’s stimulus measures and stable gold reserves boosted equity market sentiment. Analysts expect gold to retest support at $2,633 per ounce. In the upcoming week, the CPI report will influence the Fed’s interest rate decision.

The euro broke out of a 2-month range and fell against the USD on Friday following the unexpectedly strong NFP report. With improving economic data and a less dovish Fed stance, traders are now pricing in a lower chance of a 50-bps rate cut in November. Expectations for ECB monetary policy easing are rising, with two 25-bps cuts expected in the coming months. EUR/USD is currently bearish, with no major market-moving events expected.

The Australian dollar also weakened against the US dollar on Friday amid strong NFP data. Traders now see a reduced chance of a 50-bps rate cut by the Fed in November. The RBA is expected to cut rates in December, with a possibility of policy remaining unchanged until early 2025 if inflation stays high. AUD/USD is trading around 0.68000, with the upcoming RBA meeting minutes likely to impact the pair’s movement.



Read more at Investing.com: Gold Slides Amid Robust US Jobs Data While Euro Breaks Lower on Dollar Strength