This article examines gold’s outlook, exploring possible scenarios that could develop in the near term once Friday's U.S. employment data is released.
While Fed Chair Powell has signaled that the central bank is in no rush to cut rates and would need more evidence thatis converging to 2.0% on a sustainable basis before pulling the trigger, traders remain skeptical and are betting on the easing cycle starting as soon as June, spurred in part by a resurgence of the regional banking crisis.
The disconnect between Powell's message and market expectations appears to be driving bond yields lower, reinforcing bullion’s appeal. For context, the yellow metal tends to rise when interest rates move down, as this reduces the opportunity cost of holding non-yielding assets. Eager to gain insights into gold's future path? Discover the answers in our complimentary quarterly trading guide. Request a copy now!and the Fed. Economists predict the U.S. economy added 200,000 jobs in February, but an upside surprise should not be ruled out, with recent employment data coming consistently above estimates.
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