GOLDWELL：Daily Market Recap – GOLD Price falls after US jobs report

Gold prices began a correction after the release of two better-than-expected indicators on the U.S. labor market. These data are fuelling fears that the Fed will move sooner than expected on the path to tightening monetary policy.

While these better-than-expected indicators bode well ahead of Friday's monthly employment report (NFP), they may provide arguments for the Federal Reserve to begin considering a normalization of its ultra-accommodative monetary policy, a rhetoric that is beginning to be heard from some at the institution.

After several weeks of gains, the ounce of gold underwent a major correction on Thursday. Indeed, prices had confirmed a bullish recovery signal in early April when they crossed the upper bound of their channel.

Nevertheless, we believe that the $1,850 support is a key pivot point, so buyers should defend this level to restart the upward momentum towards $1,960. While gold is experiencing short-term profit-taking, precious metals (silver) are beginning to come back into focus and their chart pattern is arguing for a new leg up.

(Chart Source: Tradingview 03.06.2021)

Disclaimer: This material has been created for information purposes only. All views expressed in this document are my own and do not necessarily represent the opinions of any entity.