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Date:
04th Mar 2021
Author:
Dalmas Ngetich, for CryptoAltum News Team

Gold Contracts despite Weaker Private Employment Records

Gold is rapidly losing its shine, cratering on Wednesday despite lower-than-expected ADP data (117k versus 203k). This could project weakness in the widely anticipated NFP data, which may see the yellow metal glide higher, shaking off weakness. Gold is currently trading at a nine-month low bogged down by high Treasury yields of the last few days.


Details: 

Rising yields portend trouble for gold bugs, a situation that's made worse by a stronger USD that's hammering the yellow metal's appeal. At a nine-month low, gold prices may further sink as bears of Nov 2020 build on the trend at the expense of bulls. If Friday's NFP data shake off ADP weakness, gold losses may be compounded. Consequently, it would strengthen trader conviction that the USD uptrend is only getting started.


Impact on gold prices: 

Bearish. ECB officials are concerned by the "unwarranted rise of bond yields" in the U.S. The rise is heaping pressure on valuation across all asset classes, with gold emerging as a casualty. Additionally, an improving economy is forcing an outflow from safe havens, impacting gold.


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