Gold Recovers on Weak US Labor Market Conditions
The gold selloff was extreme, analysts observe, even with its bullish long-term outlook. A combination of weak labor markets and a meager addition to weekly earnings pushed the yellow metal higher. Analysts predict the labor markets to recover to pre-corona levels after five years. Their prediction is a boon for gold prices going forward.
Gold's price action, for the better part of last week, mirrored the dump of Silver even with the alleged WSB pump early last week. The end of last week's revival may continue this week even if price action favors gold bears. With hopes of the global economy recovering and bond yields steep rise in over five years, a risk-off environment goes against the bullion prices. Nonetheless, with central banks unyielding in their money printing and expectation of inflation, capital may flow back to gold as a haven asset.
Impact on Gold:
Neutral to bullish. There are conflicting data that feeds both the quote and the base currencies. Given the state of money printing by central banks, rising yields—hinting of deterioration of public finances, and bulls appearing to buy the plunge, gold prices may steady and even gain.
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