Gold price tumbles sharply after a solid January US Nonfarm Payrolls report. A break under $1,880 would exacerbate losses, strategists at TD Securities report.
Pricing for rate cuts has notably reversed weekly gains
“A wild beat on NFP data is creating shocking whipsaws in recent trends. Pricing for rate cuts has notably reversed weekly gains, adding further support to the broad Dollar, and pummeling Gold prices in the process.”
“CTA trend followers are unlikely to add to downside flows until prices break the $1,880 range, which suggests the yellow metal will continue to take its cue from the broad Dollar for the time being.”
“While central banks bought a whopping 417t in 2022Q4, pointing to substantially underreported official purchases, prices are now challenging the uptrend support driven by the recent central bank buying-binge.”