XAU/USD to race higher towards $1900 on NFP disappointment

(August 31) Gold rose as Treasury yields declined after the Jackson Hole symposium reaffirmed the Fed was in no rush to raise interest rates. US Nonfarm Payrolls report on Friday will reveal how resilient the US labour market has been in the face of the recent Delta outbreak. Weak numbers could propel XAU/USD towards $1900, strategists at OCBC Bank report.

“Fed Chair Powell revealed the central bank is likely to begin tapering this year but said little about the pace and timing of how the tapering process might be conducted.” 

“Gold closed above $1800 once more on Friday after a two-day hiatus, suggesting interest in gold as an inflation hedge may be returning.”

“We expect gold to possibly head towards $1830 in the near term if the rally continues and possibly to $1900 if this Friday’s job report disappoints.”

FXStreet