Gold price drops as investors prepare for US jobs report, USD strengthens

From Investing.com: 2025-02-07 03:28:00

The price of gold declined by 0.3% as the USD strengthened ahead of the upcoming US jobs report. Investors are taking profit and closing long positions before the volatile US nonfarm payroll (NFP) report. Trade tensions between the US and China are increasing, stoking fear of higher inflation and driving investors towards safe-haven assets like gold and silver. The NFP report will reveal the latest unemployment figures and average hourly earnings, influencing US interest rate expectations and investor sentiment.

The euro lost 0.2% against the USD despite weaker-than-expected Jobless Claims report. Safe-haven flows into the USD have weakened slightly as investors believe a global trade war could be averted. Eurozone retail sales figures were weaker than expected, with expectations for a more dovish monetary policy from the European Central Bank (ECB) compared to the Federal Reserve (Fed). The US NFP report will likely trigger above-normal volatility in the Forex market, impacting the EUR/USD pair.

Bitcoin moved sideways as cautious investors’ sentiment prevails. BTC/USD has been consolidating within a range due to geopolitical risks and the Fed’s hawkish stance on interest rates. Blackrock announced plans to list a bitcoin exchange-traded product (ETP) in Europe, potentially attracting significant interest and increasing capital inflows into BTC. The US NFP report may provoke volatility in BTC/USD, with higher-than-expected figures potentially leading to a minor sell-off and lower-than-expected results driving BTC/USD higher.



Read more at Investing.com: Gold Dips as Investors Brace for Key US Employment Report