Gold consolidates below $4,250 as dollar strength and Fed bets cap gains ahead of NFP
Gold prices are holding below $4,250 in Asian trade on Friday, with the earlier pullback from multi-month highs stalling as markets await US payrolls data. The metal remains pressured by a firm US dollar and hawkish Federal Reserve expectations.
Gold (XAU/USD) consolidated just under the $4,250 level during Friday’s Asian session, pausing the prior day’s retreat from its strongest level since June. The precious metal struggled to gain traction amid persistent headwinds from a strengthening US dollar and elevated Federal Reserve rate-hike bets.
Traders showed caution ahead of the US nonfarm payrolls report, which could shape near-term monetary policy expectations. The earlier dip from multi-month highs has stalled for now, but the absence of fresh bullish catalysts kept prices in a tight range.
The greenback’s uptrend, supported by hawkish Fed commentary, continued to cap upside in gold. Market participants are weighing the potential for a strong jobs number to reinforce the case for higher rates, further dampening demand for the non-yielding asset.
Source: FXStreet Forex News