• Entertainment
  • Finance
  • Marketing
  • Real Estate
  • Technology
  • Social
National Journal Community Of e-Experts
Finance 0

Gold Prices Bid As Weak NFPs, Trade War Concerns Stoke Haven Demand

By Kurt Osterberg · On April 7, 2018

Gold Prices Bid as Weak NFPs, Trade War Concerns Stoke Haven Demand

Fundamental Forecast for Gold: Neutral

  • Gold price nudge higher on the week as market sentiment sours- On the lookout for a low
  • Gold prices inched higher this week with the precious metal nudging up nearly 0.5% ahead of the New York close on Friday. The gains come amid continued volatility in broader markets with all three major U.S. equity indices poised to close lower on the week. For gold, this volatility may keep a floor under prices as risk sentiment begins to deteriorate.

    U.S. Non-Farm payrolls showed a gain of just 103K jobs for the month of March with 50K downward revision to the two-month net payroll count. Although unemployment rate held steady at 4.1% (expectations were for a down-tick to 4.0%) the labor force participation rate fell to 62.9% and further highlights the overall weaker tone of the report.

    With the unemployment rate at-or-near the central bank’s “natural” longer-running rate, this week’s developments do not change the broader outlook for Fed policy moving forward. Heading into next week however, traders will be eyeing the release of U.S. CPI (Consumer Price Index) and minutes from the latest FOMC policy meeting.

    The NFP disappointment adds to mounting concerns regarding the growing threat of a trade war as rhetoric between the Trump administration and China continues to heat up. Traders found solace in the perceived safety of gold with prices reversing sharply off the weekly lows on Friday. But does this mean the correction off the March highs is over? The technicals suggest we’re not out of the woods just yet.

    Gold Prices Bid as Weak NFPs, Trade War Concerns Stoke Haven Demand

    Gold Prices Bid as Weak NFPs, Trade War Concerns Stoke Haven Demand

  • A summary of IG Client Sentiment shows traders are net-long Gold – the ratio stands at +2.67 (72.8% of traders are long)- bearish reading
  • Long positions are 0.1% higher than yesterday and 0.7% higher from last week
  • Short positions are4.5% lower than yesterday and 8.4% lower from last week
  • We typically take a contrarian view to crowd sentiment, and the fact traders are net-long suggests Spot Gold prices may continue to fall. Traders are further net-long than yesterday and last week, and the combination of current positioning and recent changes gives us a stronger Spot Gold-bearish contrarian trading bias from a sentiment standpoint.
  • Print Friendly, PDF & Email

    Share Tweet

    Kurt Osterberg

    You Might Also Like

    • Finance

      STEPN Sneaker NFTs Sell For $100, Previously Worth $1200

    • Finance

      NFT Prices in Free Fall – 5 NFT Collections to Start Buying Today

    • Finance

      5 NFTs Trending on Twitter Going Cheap to Invest in Now

    No Comments

    Leave a reply Cancel reply

    Top Finance

    • 3 Best Large-Cap Blend Mutual Funds For Enticing Returns 3 Best Large-Cap Blend Mutual Funds For Enticing Returns
    • What is Value Chain Analysis? How to Deliver Value & Gain a Competitive Advantage What is Value Chain Analysis? How to Deliver Value & Gain a Competitive Advantage
    • Hedge Funds In The US Hedge Funds In The US
    • 5 Ridiculously Useful Non-Monetary Reward Examples that Improve Employee Engagement 5 Ridiculously Useful Non-Monetary Reward Examples that Improve Employee Engagement
    • Chart: Amazon’s Dominance In Ecommerce Chart: Amazon’s Dominance In Ecommerce

    New Posts

    • STEPN Sneaker NFTs Sell For $100, Previously Worth $1200

      STEPN Sneaker NFTs Sell For $100, Previously Worth $1200

      June 20, 2022
    • NFT Prices in Free Fall – 5 NFT Collections to Start Buying Today

      NFT Prices in Free Fall – 5 NFT Collections to Start Buying Today

      June 20, 2022
    • 5 NFTs Trending on Twitter Going Cheap to Invest in Now

      5 NFTs Trending on Twitter Going Cheap to Invest in Now

      June 20, 2022
    • Bill Gates – ‘NFTs & Crypto Based on Greater Fool Theory’

      Bill Gates – ‘NFTs & Crypto Based on Greater Fool Theory’

      June 20, 2022
    • Actor Seth Green Pays $300,000 to Recover his Stolen BAYC NFT

      Actor Seth Green Pays $300,000 to Recover his Stolen BAYC NFT

      June 20, 2022
    • About
    • Contact Us
    • Privacy & Policy
    • Sitemap
    • Terms of use

    Copyright © 2018-2021 NJCEE. All Rights Reserved.