weekahead gold Don't rule out a long weekend gold price surprise – analysts
Despite gold's $20 relief rally following the U.S. jobs report, analysts remain cautious, citing negative macro drivers and dangerous technical levels that could take the precious metal lower next week."Gold is becoming a punching bag as surging Treasury yields have rejuvenated the king dollar trade. It has just been bad news everywhere for gold. No reprieve in sight for gold until the move higher with global bond yields is over," said OANDA senior market analyst Edward Moya.
"The data suggest labor market conditions are beginning to slow more markedly, which we expect will contribute to weaker economic growth over the coming years. With easing labor market conditions also contributing to weaker wage pressures, that will help to push back on the Fed's recent hawkishness," Pearce said Friday.
"I would be really careful here given the longer-term outlook for the stock market. I don't see how gold can sustain a rally with equities getting pounded and the dollar being bought on dips," he said."If the near-term lows in gold can't hold and we drop to $1,678, gold could retreat to the pandemic lows of $1,625 and then even $1,484. Gold needs to hold $1,670-$1,680. If it does not, it is going down to lower levels.