WEEK AHEAD: Jobs report a 'game changer' for gold price, focus shifts to next week's inflation numbers | kitconews gold silver finance preciousmetals markets mining investing |
With the surprisingly strong employment situation in the U.S., the Federal Reserve won't be pivoting from its aggressive tightening cycle in September, which will hurt gold in the short term, according to analysts. The focus next week will be on the highly-anticipated inflation numbers.
Last week, there was a lot of confidence in the market that the Fed could pivot early from its oversized rate hikes due to the slowing economy. However, all of this shifted this week, especially with the strong employment report, said OANDA senior market analyst Edward Moya. That is especially true after gold tried to rise above $1,800 and failed this week."It looked like maybe gold will attempt to stabilize above it. This is going to be tough for gold to continue. It went from $1,700 to $1,800 in one way move, and it looks a bit exhausted here," Moya noted.
"I don't think we'll see $1,700 again because of the support there, but for the bulls to come back, gold needs to close above $1,800. And if gold can manage a breakout through the $1,800 to $1,812 level, buying will get aggressive, and we won't have any trouble getting to $1,850-75. That is where momentum comes in," Cholly added.Most of the attention next week will be on the U.S. July inflation report, with economists projecting annual CPI to come in at 8.
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