Market reviews

Gold continues to trade below 50-period SMA

Bullion could remain under pressure as inflationary risks still remain.  

XAUUSD – back above $1900. Focus now on Jackson Hole.

Gold continues to remain under pressure and trades below the key $1900 psychological level, hitting a five-month low at $1889.59 on Thursday

The precious metal swiftly relinquished all of its gains immediately after Thursday’s softer US CPI.

Today’s US jobs report would hold great sway over whether spot gold returns to the $1900-$1934 range it adhered to between June and July, or whether it can resurface above its 50-day SMA.

The upcoming US jobs report is set to have a major say whether spot gold moves closer to $1900 or $2000 by this time next week.

However, if the Fed pours cold water on the notion that its rate hikes are coming to an end, that could prompt bullion to unwind some of its recent gains and falter back into the mid-$1900s.

Spot gold is taking delight in the fact that its primary nemesis, the US dollar, has weakened substantially following the evident slowdown in US inflation.

Gold has been dragged back closer to the psychologically-important $1900 level by Thursday’s blockbuster private payrolls number.

A daily close below the psychologically-important $1900 should cause bullion bulls’ shoulders to slump even more.

Gold has been dragged lower this week as markets elevate bets for one more 25-basis point Fed rate hike by November.

It’s been a super-eventful week for markets with major central bank meetings to digest as well as a lot of ecoonmic data releases.

Gold enjoyed its best day in five weeks as buyers pushed prices up by 1.3% on the day. Yesterday saw softer than expected US data which cooled Fed rate bets and unwound some recent hike pricing.