We saw gold ounce price recover on Thursday from 1917$ to 1923$ and dropping back to 1917 after the economic data releases of this afternoon.
Gold prices remained under pressure and could continue to see a decline as traders take US economic data into account as well as the changing expectations around US monetary policy.
Gold has been dropping since the 1st of September’s high where it hit almost $1,953.
While the solid US economic resilience has been weighing on the commodity, economic data elsewhere could fuel some volatility as Europe and China continue to miss estimates.
US data on the non-manufacturing sector and on the job market could support the expectations of interest rates remaining at high levels for longer, which could continue to pull gold prices to the downside potentially into next year as well. Jobless claims were lower than expected, supporting the Federal Reserve’s narrative for a hawkish policy.
In this regard, traders could continue to monitor new data ahead of the Federal Reserve’s meeting later this month for clues on the probability of another interest rate hike this year.
Gold prices could see some volatility next week in particular if inflation and job market data create a surprise.
Gold could also see pressures as the US dollar continues to extend its gains since the middle of July. At the same time, yields on short-term US treasuries remained elevated while yields on their longer-term equivalents continued to rise, drawing investors away from gold.