Gold welcomes market turmoil, will non-farm make a new high?
In the Asian session on March 6, gold price is ranging around $1670 level. It hits the $1680 mark during the session and is currently pulling back slightly to $1677.
Yesterday, gold price continued to rise due to market concerns about the continuous spread of the new crown virus, causing funds to seek for safe-haven assets. On the other hand, the US dollar index fell sharply yesterday, reached a low level at 96.5, a new low this week, while US 10-year Treasury bonds and 30-year Treasury bonds both fell below 1% and below 1.5%, both hitting the historical low, which keep being a strong support to the gold price.
The non-farm payroll in February will be announced at 21:30 (GMT+8). Investors will evaluate the impact of the new crown pneumonia on employment in US tonight. According to market forecasts, the number of non-farm employment will increase by 175,000, with a previous value of 225,000. In addition, the expected February unemployment rate in the US is 3.6%, which is the same as the previous value.
At present, it is expected that if there is an accident in the NFP, the US dollar will be again under selling pressure or make a new low this year, so the gold price most likely will once again be pushed, probably hit the $1700 mark.