The Gold price (XAU/USD) initially surged on Friday after weaker-than-expected Nonfarm Payrolls data, but then gave up all its gains and ended the day lower.
- Initial Rally on Lower Job Growth: Gold jumped on the NFP report showing a miss on job creation expectations, potentially indicating less pressure on the Fed to raise rates.
- Market Optimism Leads to Gold Price Decline: The overall positive market sentiment and a rally in US stocks weighed on the safe-haven demand for Gold.
- Technical Analysis: Uncertain Direction: The Measured Move pattern completion is unclear, leaving potential for either upside or downside.
Key Points from NFP Report:
- Job growth (175K) fell short of analysts’ estimates (243K).
- Average Hourly Earnings growth slowed, suggesting easing inflation pressures.
Impact on US Dollar and Gold:
- A weaker USD due to potential future Fed rate cuts could have supported Gold.
- However, the risk-on environment dampened the demand for safe-haven assets like Gold.