Forex. Gold exchange rate forecast for today May 10, 2021
Gold is rising in price on the back of lower yields and a lower Dollar. On Friday, prices rose to a two-month high and reached the best mark of the week in six months. The quotes were fixed above the resistance level of $1800 and reached the level of $1830.
The NFP report showed an unexpected slowdown in U.S. job growth, supporting the case for economic stimulus and low interest rates. The data shows that only 266,000 jobs were created in the US in April. Treasury yields fell on the news as risk appetite declined and the dollar weakened, which ultimately boosted demand for gold as a defensive asset.
Gold has recovered from a poor start to the year, when it came under pressure from a rising dollar and bond yields. Both factors are already less relevant, and inflation expectations are rising against the background of strengthening demand for commodities. The low number of new jobs reinforces the opinion of market participants that a tightening of monetary policy is not yet expected. Employment data is traditionally late, but using last month's figures, there is no need to change the current policy that supports gold prices. Several Fed officials immediately lowered inflation concerns and withdrew the idea of reducing bond purchases.
Signals for Gold trading on Forex
In the forecast, I expect the Gold price to continue to rise to the levels of 1835, 1840 and 1850 Dollars per ounce.