Trading strategy the beginning of the week,waiting for Nonfarm

4 mar

World gold prices tend to decrease with spot gold down 2.1 USD compared to last week's closing level to 2,080.2 USD/ounce.

Last week, the gold market entered a new trading week relatively quiet without catalysts. Prices were nearly flat until Thursday when a report showed consumer prices were lower than forecast. After a slow start Friday morning, the precious metal began to attract some follow-on buying momentum following the results of the University of Michigan's consumer sentiment survey and weaker-than-expected manufacturing data. April gold futures prices continuously increased and closed the week at 2,095.2 USD/ounce, up 2% compared to the previous week. This was the best weekly gain since November.

Although gold had a spectacular breakthrough last week, experts are still cautious about this precious metal in the short term. Some opinions say that the gold market may be under profit-taking pressure this week and the price is likely to be pushed back to the range that gold has maintained in recent times. Besides, although recently released data shows that inflationary pressures are decreasing, according to experts, that is still not enough for the US Federal Reserve (Fed) to change its view on interest rates. . The data released this week is considered very important as it can change the newly rekindled market optimism.

This week, the market will wait for the February non-farm payroll report. This employment data is considered very important by investors and can take away everything that gold had last week. . Forexlive.com expert Adam Button said that he only believes last week's price increase in gold is sustainable if the upcoming report shows that the job market is actually going down.