- Gold bounce fades off.
- US dollar averts further fall as risk-off mood back in vogue.
- US NFP to guide the forward direction in the XAU/USD.
Gold prices continued to decline on Thursday to close trading around 1931 dollars amidst considerable declines in the US equities. At the same time, the US dollar was volatile but managed to hold to the recent gains made on the hopes of the North American economic recovery.
The jobless claims came in below one million mark last week along with concrete indications in the US manufacturing sector activity. US policymakers have shown signs of moving towards a consensus regarding the fiscal stimulus package to revive the virus battered economy.
The gold bulls are awaiting the US Non-farm payroll numbers due later on Friday at 1230 GMT for signals regarding the economic growth, as job losses are a significant concern for the policymakers despite some signs of business revival. The expectations are the addition of 1400K jobs in August compared to +1763K in the prior period, while the unemployment rate is seen at 9.8 Percent from July’s 10.2 Percent.
Any disappointment on the job numbers would push the dollar down while buoying the gold prices.