Gold Up For The Week After Mixed Jobs Report

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Gold Up For The Week After Mixed Jobs Report

Gold Up By 1.4% For The Week After Mixed Jobs Report

Before Friday's NFP report, Gold prices were trading at a 1-month high. However, once the mixed NFP report and the ISM data were released, the Gold (XAU/USD) consolidated and ended the week with a 1.4% gain only.

A closer look at the NFP report reveals that the number of new jobs generated during August was more than in July. However, the wage growth was not so good, and the unemployment rate also went up a notch. The mixed report didn't help the USD at all until the ISM's PMI was released, which was better than expectations.

Gold Futures & Gold Spot Marginally Positive

As a result of this, the USD gained strength and pushed the majority of other assets down, including Yellow Metal as well. On Friday, the Gold futures December contract was exchanging hands at $1981.70, which is the highest level in the last 1 month. However, the futures contract also turned lower and closed the week near $1967.10.

The gold spot prices are currently trading near $1940.61 with a 0.03% ($0.49) gain for the day. In simple words, the spot gold only gained a little during the day and ended the week.

Although the NFP report was mixed, it did signal that we may not see further rate hikes any time soon. That's a good thing for Gold which is not performing well in the recent high-interest environment. According to one expert from ONADA, that's something that will be appreciated by most risk assets including Gold.

Looking ahead, there are 3 opportunities when the Fed may raise its rates in 2023, including the 20th of September and the 1st of November. After that, the next FOMC meeting will be on 13th December, where the interest rate policy will be decided.

If we don't get further rate hikes at the September and November meetings, it will be Gold bullish and may help the spot to cross the $2,000 level once again.

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