Gold’s Golden Rally: Three Weeks, Three Gains
Gold (XAU/USD) is looking to extend a winning streak, inching past the $2,170 mark this past Friday. With the market eyeing a third straight weekly climb, investors are buzzing.
Why the Bullish Buzz?
- Geopolitics – Tensions flare as the Red Sea sees Houthi rebels claiming civilian lives aboard a commercial vessel. Safe‑haven demand spikes.
- US Treasury Yields – They’re sliding, which tends to boost gold’s appeal.
- Fed Walking the Talk – Jerome Powell’s latest congressional statement hints at a near‑future rate cut, just enough to keep the economy from bruising while easing inflation.
Power Play: The Fed’s Sweet Spot
Powell’s two‑day testify highlighted “confidence that inflation is steady toward 2%. If that message sticks, markets might price in an interest‑rate easing that doesn’t derail growth—technically, a “soft landing.”
Gold’s Drama Clock: NFP’s Deadline
Today’s Non‑Farm Payrolls (NFP) drop the curtain on February’s job pulse:
- Expect 200,000 new jobs – a dip from January’s 353k.
- Unemployment holding at 3.7%.
- Hourly wages 0.3% (down from 0.6% in January).
- Annual wage growth 4.4% (4.5% last month).
Moderate wage gains could slow the march to the 2% inflation target. That might backfire on the Fed’s rate‑cut hopes and, by extension, gold’s allure as a non‑yielding asset.
ECB & CNY: The Side‑Wheel Effect
The European Central Bank is dabbling in policy tweaks, trimming 2024’s inflation outlook from 2.7% to 2.3%. In the Chinese market, the People’s Bank of China is buying gold like it’s Sunday school—an anchor against their housing slump and stock market wobble.
Bottom Line: Gold’s Got Its Eye on the Horizon
With everything swirling—Fed hopes, employment data, geopolitical sparks, and a shiver of international policy—gold looks primed for a “tide‑turn” moment. If the NFP data confirms a slower job‑growth and wage climb, gold could kiss the market’s expectations and push higher. Traders who keep their fingers on the pulse might uncover a few gold‑rich trading gems today.
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