Gold Stuck Below $4,500 as Bulls Eye NFP Report
Gold struggled to maintain its recent gains on Friday, consolidating below $4,500 as traders waited for the US Nonfarm Payrolls (NFP) report. The closely watched data is expected to provide cues about the Federal Reserve's policy path amid receding bets for a rate hike in September.
The NFP report will be crucial in influencing the US Dollar price dynamics and providing an impetus to the non-yielding bullion, according to TD Securities. However, the bank remains constructive beyond the immediate data risk, stating that it does not anticipate material downside for precious metals due to a renewed dollar debasement theme.
US Governor Christopher Waller expressed his preference for keeping interest rates steady at the September FOMC meeting, provided there are no surprises from upcoming inflation data. This sentiment pushed US bond yields and the USD sharply lower, assisting Gold's recovery from a four-week low.