Gold Plunges as US NFP Blowout Pushes DXY Above 100
Gold (XAU/USD) tumbled during the North American session on Friday after the US Nonfarm Payrolls report far exceeded expectations, with the prior three months revised upward, boosting the dollar and raising the odds of further Fed tightening.
The yellow metal sold off sharply as the US dollar index climbed above the 100 mark on the back of a much stronger-than-expected jobs report. Nonfarm Payrolls smashed forecasts, and figures for the previous three months were also revised higher.
This data reduces the likelihood of a near-term Fed pivot and increases the probability of additional rate hikes. The stronger labor market adds to the narrative of a resilient US economy, which typically weighs on safe-haven assets like gold.
XAU/USD remains under pressure as traders reassess the monetary policy outlook. The next support levels could be tested if the dollar continues to gain from the hawkish repricing.
Source: FXStreet Forex News