Gold on Track for Strongest Weekly Performance in Three Months; Focus Shifts to U.S. Employment Data
Gold advanced on Friday, positioning itself for its most robust weekly gain in a quarter, underpinned by mounting anticipation of a Federal Reserve interest rate reduction this month. Market participants are now turning their attention to the upcoming U.S. nonfarm payrolls report due later today.
1H Chart Trading Levels as per NFP Data Release
Sell at: $3575 -$3601 -$3627 -$3653-$3679
Buy at: $3510- $3480- $3450- $3420- $3390
U.S. TREASURY YIELDS DROP TO FOUR-MONTH LOWS AS FED POLICY OUTLOOK SHIFTS
Bond Market Moves
10Y Yield: Slipped to 4.15%, lowest since May 1.
2Y Yield: Fell to 3.58%, marking a four-month low.
This marks a decisive shift in market positioning, with investors reducing bets on further Fed tightening.
Get a detailed video here: NFP Day Gold Analysis
Drivers Behind the Move
Fed Uncertainty: Markets increasingly convinced the tightening cycle is at/near its end.
Economic Data: Rising evidence of labor market cooling (weak NFP, softer JOLTS, higher jobless claims).
Inflation: Easing price pressures reinforce confidence in rate cuts ahead.
Risk Sentiment: Treasuries acting as a safe-haven play amid global volatility and U.S. political noise.
Market Takeaways
Bonds: Rally continues; yields anchored lower as markets price September cut odds higher.
Dollar (DXY): Pressured by falling yields, though safe-haven flows provide some balance.
Gold (XAU/USD): Supported by lower yields; remains technically firm above $3,335 pivot.
Equities: Relief from lower rates, though growth concerns cap risk appetite.
👉 This aligns with the broader theme: Fed policy pivot + slowing growth = long-end yield compression.
The September FOMC is shaping up as a key inflection point, with the bond market already front-running easing expectations.
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