Affected by the "surging" non-farm payroll data, gold fell below the daily moving average.
On Friday, May 5th, gold rebounded after a sharp drop following stronger-than-expected US non-farm payroll data that eased expectations of a Fed rate cut. At the end of the US market, spot gold closed at $2016.45 per ounce, down $33.76 or 1.65%. It reached an intraday high of $2053.02 per ounce and a low of $1999.45 per ounce. For the week, spot gold rose $26.94 or 1.35%. This week, even with the acquisition of First Republic Bank by JPMorgan Chase, market concerns about the US banking sector intensified. Coupled with market expectations of a pause or even a quick rate cut by the Fed, gold "soared", even breaking its historical high of $2074.77 per ounce on Thursday upon opening. On Friday, impacted by the "surprisingly high" non-farm payroll data, gold briefly touched the $2000 mark, giving back more than half of its weekly gains, although it is still expected to close the week higher. The Fed's "quite aggressive" cleanup measures for the US banking system show that the Fed will not let anything hinder its plan to lower inflation. Pozsar stated at a New York Fed seminar on Friday that he had never seen the Fed so proactive in preventing a crisis, staying ahead of potential problems. He also said that interest rates could rise further from here, noting that the economic system is still flush with liquidity and households have extra savings. Gold price analysis: The non-farm payroll data week concluded with a price surge of $100 following the interest rate decision, followed by an $80 drop, resulting in a total swing of over 180 points. It was a mixed bag for investors. Regardless of individual outcomes, the past is for reflection. As the saying goes, "Looking back, the light boat has passed ten thousand mountains; looking forward, the long road ahead is also bright." Let's review the gold price trend this week. Since Monday was a holiday, we did not participate in the market. However, gold opened at 1990 and fell, strengthening around 1977 during the European session, surging to 2005 before falling back. Influenced by the Fed's interest rate decision, gold's trend on Tuesday and Wednesday was the same: intraday consolidation followed by a significant rise in the US session. On Thursday, with the interest rate hike as expected at 25 basis points and institutional intervention driving down prices, gold surged to around 2040. Most surprisingly, on Thursday's opening, it unexpectedly opened at a record high of 2079 before falling throughout the day; On Friday, gold opened and fell continuously, experiencing a sharp drop to the $2000 level due to the non-farm payroll data, before rebounding to 2016 and consolidating before closing.
Time:
2023-05-06 11:07
On Friday, May 5th, after stronger-than-expected US non-farm payroll data eased expectations of a Fed rate cut, gold rebounded after a rapid decline. At the end of the US market, spot gold closed at $2016.45 per ounce, down $33.76 or 1.65%, hitting an intraday high of $2053.02 per ounce and a low of $1999.45 per ounce. For the week, spot gold closed up $26.94 or 1.35%.
This week, even as First Republic Bank was acquired by JPMorgan Chase, market concerns about the US banking sector intensified, coupled with market expectations that the Fed would pause rate hikes or even cut rates soon, gold "took off," even breaking through a historical high of $2074.77 per ounce directly at the open on Thursday. On Friday, due to the impact of the "explosive" non-farm payroll data, gold once touched the $2000 mark, giving back more than half of its gains for the week, but is still expected to close higher for the week.
The Federal Reserve's "quite aggressive" cleanup of the US banking system shows that the Fed will not let anything stand in the way of its plan to lower inflation. Pozsar said at a New York Fed seminar on Friday that he had never seen the Fed so proactive in preventing a crisis, staying ahead of wherever things might go wrong. He also said that interest rates could rise further from here, noting that the economic system is still awash in liquidity and households have extra savings.
Gold price analysis: The non-farm payroll data week concluded with a price surge of $100 following the interest rate decision, followed by a drop of $80, resulting in a total fluctuation of over 180 points. It was a mixed bag for investors. But regardless of individual outcomes, the past is for reflection. As the saying goes, "Looking back, the light boat has passed ten thousand mountains; looking forward, the long road ahead is also bright." Let's review the gold price trend this week. Due to the May Day holiday on Monday, we did not participate in the market, but gold opened at 1990 and fell, strengthening and rising to around 1977 during the European session, peaking at 2005 before falling back. Influenced by the Fed's interest rate decision, gold's trend on Tuesday and Wednesday was the same: intraday consolidation followed by a price surge in the US session, with significant gains. On Thursday, with the interest rate hike as expected at 25 basis points and institutional intervention driving down prices, gold prices surged to around 2040. Most surprisingly, on Thursday's open, the price unexpectedly surged to a new historical high of 2079 before falling; On Friday, gold opened and fell continuously, with the non-farm payroll data triggering a sharp drop to the 2000 level before rebounding to 2016 and consolidating to close.
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