12:39 PM · 1 April 2022

🏆Gold drops 1% ahead of NFP data!

GOLD
Commodities
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Gold is one of the more volatile commodities today and drops almost 1% ahead of NFP data release. Markets are relatively calm today in spite of Russian saying that the basis for peace talks diminished after Ukraine allegedly hit fuel depots in Russia. The US dollar gained yesterday on the back of war-related uncertainty and resumed pick-up in yields. Higher yields and stronger USD are putting pressure on gold prices today. However, NFP release could be a mover for both USD and gold. Market expects today's report to show 475k jobs gain in March, more or less in-line with 455k signaled by ADP data earlier this week. However, it should be noted that strong readings of regional employment subindices boost chances for a positive surprise. Traders should keep in mind that NFP data tends to be volatile and, given current fundamental background, even a big miss is unlikely to discourage Fed from hiking rates by 50 basis points. Wage growth is also expected to accelerate to 5.5% YoY, after a deceleration from 5.7 to 5.1% YoY in February.

Gold is pulling back ahead of the NFP report release. Market expects the report to show an addition of 475k jobs. Source: xStation5

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