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SubscribeGold prices take rounds to $1,685.13 at the start of the week’s trading. Despite being above Friday’s low of $1,670.76, the bullion nears the lowest in more than a month as safe-havens remains offered amid broadly upbeat trading sentiment.
Read: What you need to know as markets open: Risk-on as investors cheer astonishing NFP
Friday’s US employment numbers hinted that the coronavirus (COVID-14) impact on the jobs market could be temporary and that the global economies could recover quickly. The headlines US Nonfarm Payrolls (NFP) rose 2.5 million versus expectations of -8 million. Further, the Unemployment Rate also added to the optimism by 13.3%, lesser than the 19.8% forecast.
While the news boosts overall market mood and propelled Wall Street after the release, it also offered strength to the US dollar in recovering from multi-day lows, which in turn added weakness onto the yellow metal. It’s worth mentioning that the US 10-year Treasury yields added over seven basis points (bps) to 0.893% at the end of Friday’s closing.
During the weekend, China released May month trade numbers while posting the biggest trade surplus despite the pandemic. The $62.93 billion of Trade Surplus, against $39 billion forecasts, seems to have been majorly boosted by the medical exports. Details suggest that the Exports have been down 3.3%, versus -7.0% market consensus, whereas Imports dropped heavily below -9.7% expected to -16.7%.
Other than the data releases, receding protests in the US and a probable merger between the drug majors AstraZeneca and Gilead also add to the market’s upbeat sentiment. Even so, the US-China tussle and an uneven pattern of virus cases in the US still keep the fear on the desk.
Looking forward, Japan’s second reading of the first quarter (Q1) 2020 GDP, expected to have recovered from -0.9% forecast to -0.5%, will offer immediate direction. Though, the major attention will be given to qualitative catalysts for fresh impetus.
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