Gold Price Forecast: XAUUSD to build on its gains if NFP proves disappointing – Commerzbank

Gold climbed noticeably on Thursday for the second day running. A downbeat Nonfarm Payrolls print could mean more upside potential for the yellow metal, economists at Commerzbank report.

Gold is being lent tailwind by the US dollar

“Gold is being lent tailwind by the US dollar, which has been prone to weakness over the past two days, thereby more than offsetting the higher bond yields.”

“The ADP’s employment figures for the US proved disappointing yesterday, showing a mere 120K jobs created in May and a downward revision of the previous month’s figure. If this picture is repeated in today’s official labor market data, gold is likely to build on its gains because this would presumably prompt the market to lower its expectations as regards US Fed rate hikes.”

See – NFP Preview: Forecasts from 11 major banks, strength continues