NFP is high impact news that attracts the attention of many traders. This news is released on the first Friday at the beginning of the month and is an indicator of the US economy which is one of the important economic indicators that shows the growth rate of change in the number of people employed during the previous month, excluding the agricultural industry.
Yesterday the price of gold closed at $2391 and formed a long body bullish candlestick, this reflects a strong gold price rally. The soaring gold price was triggered by several things, namely increasing geopolitical risks, increasing market confidence that the Fed would lower interest rates at the end of the year.
US economic data released this week provides an indication that inflation has subsided. Even though the NFP data released on Friday caused gold to slump because the NFP data supported the strengthening of the USD, in the end the price reversed direction and rose higher.
Gold prices fluctuate after the NFP data is released. Gold is more likely to be bullish because of the possibility of the Fed lowering interest rates. Non-Farm Employment Change data on Friday showed the actual value was 206K greater than the estimate of 191K, data in June showed 218K.
The number of new workers joining was greater than expected, causing gold to suddenly fall to $2,350. However, the high volatility in gold prices reversed upwards and gradually reached a high of $2392.
A series of US economic data indicates reduced inflationary pressures, this may be what investors believe that interest rates could fall.
According to CME's FedWatch tool, the Fed Funds rate cut, which was 0.25% in September, has accelerated from the mid-60s at the start of the week to 72% on Friday.
Yesterday the price of gold closed at $2391 and formed a long body bullish candlestick, this reflects a strong gold price rally. The soaring gold price was triggered by several things, namely increasing geopolitical risks, increasing market confidence that the Fed would lower interest rates at the end of the year.
US economic data released this week provides an indication that inflation has subsided. Even though the NFP data released on Friday caused gold to slump because the NFP data supported the strengthening of the USD, in the end the price reversed direction and rose higher.
Gold prices fluctuate after the NFP data is released. Gold is more likely to be bullish because of the possibility of the Fed lowering interest rates. Non-Farm Employment Change data on Friday showed the actual value was 206K greater than the estimate of 191K, data in June showed 218K.
The number of new workers joining was greater than expected, causing gold to suddenly fall to $2,350. However, the high volatility in gold prices reversed upwards and gradually reached a high of $2392.
A series of US economic data indicates reduced inflationary pressures, this may be what investors believe that interest rates could fall.
According to CME's FedWatch tool, the Fed Funds rate cut, which was 0.25% in September, has accelerated from the mid-60s at the start of the week to 72% on Friday.
