NFP Could Drive Gold Under $1,000

Gold prices were marching lower ahead of a key employment report that is expected to set the tone for the battered precious metal.

The Friday jobs report could prove a critical tipping point for the yellow metal, which could send the commodity lurching into bear-market territory, according to some gold watchers. A bear market for gold would see the metal register a decline of 20% or more since its 2015 settlement high of $1,300.70 an ounce on Jan. 22.

According to blogger and investment strategist Peter Grandich, the nonfarm-payrolls report could spark a $100 move in the gold price.

“A break below the pennant and it’s a near certainty [in my humble opinion] we see a test of the critical $1,000 area. Given how incredibly bearish and overcrowded the bearish camp is at the moment, I think such a test would fail and a break below $1,000 would follow, Grandich wrote in his blog Thursday.

In a recent note, analysts at research firm Aranca say that gold futures may have lost their sheen temporarily pointing to a number of headwinds, including a stronger dollar, reduced fears about Greece, the signing of the Iran nuclear pact, and slack demand for gold due to a slumping China.

via MarketWatch

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.