Gold Under Pressure; NFP Could Shift Momentum
Gold prices weakened during Thursday's trading (Aug 6) as the US dollar and US government bond yields rose again. Spot gold fell approximately 0.3% to US$4,236 per troy ounce, while gold futures eased to around US$4,295.
This decline followed gold's largest daily gain since early February in the previous session. That rally had been driven by hopes that an agreement involving Iran and Oman could reopen shipping lanes through the Strait of Hormuz.
However, market optimism began to fade following reports that vessels owned by the US, Israel, and nations deemed hostile to Iran could be barred from passage. Iran reportedly demanded compensation before allowing such vessels to use the Hormuz route.
This news pushed oil prices back up and sparked inflation concerns. If energy prices continue to rise, the Federal Reserve might maintain high interest rates or hike them further—conditions that typically weigh on gold.
Additional pressure stemmed from rising US bond yields ahead of the Nonfarm Payrolls (NFP) report. Labor market data this week has been mixed; while JOLTS and ADP figures weakened, jobless claims remained below 200,000 for three consecutive weeks.
Newsmaker Analysis: Gold remains vulnerable to a correction ahead of the NFP release as the dollar and yields strengthen again. Strong NFP and wage growth data could push gold prices lower. Conversely, weak results could dampen expectations for Fed rate hikes and open the door for gold to retest the US$4,300 level. (arl)
Source: Newsmaker.id
