TodayXAUUSD MARKET ANALYSIS/[color]
Gold climbed back on Friday morning but it is little changed at 1869 with the key NFP print due later. The main driver or the key change in the market remains the rising Treasury yield. U.S. 10-year Treasury yield stabilized at 2.924%. Equity markets are pushing higher, cooling down the demand for the dollar, and helping the Gold edge higher.
The dollar stays on the back foot amid worries that the NFP might add the smallest number of jobs since April 2021.
Investors remain on edge as some fear the pace of US monetary tightening could throw the world’s largest economy into a recession.
Today May labour report is likely to show the smallest gain in jobs since April 2021 alongside a downshift in average hourly earnings growth. If the number comes and intensifies the worries, it could be a double-sword for the gold. If worries quickly translates into a global recession risk, it could in turn boost the safe-haven dollar, which could lead the Gold lower. But if it is only moderately lower, it might weigh more on the dollar, therefore releasing some upside for the gold.