Gold: Volatility Expected Ahead of Nonfarm Payrolls on Friday
BelleOFX | May 31, 2023 08:22AM ET
The year 2022 was a bullish one for gold. The financial crisis across many developed markets had a splash effect. With inflation hitting high in the US and Europe, Ukraine's non-ending conflict with Russia and central banks having to intervene has paved the way for gold to resurface as a safe-haven asset against increasing inflation and market uncertainties.
My technical view on gold is bullish as long as it stays above $1500 in the year 2023. XAU/USD has been trading above $1900 since mid of March, and we can expect to see a big movement on the upcoming Friday as we have US nonfarm payrolls to be released. We also expect to see gold trading within the range of $2000-$2200 in the near future unless the US Federal Reserve pauses the hiking cycle of interest rates in their next FOMC economic projection.
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