Gold prices edged up in early Friday trading and look set to close the week with a gain for the first time since early June. The precious metal came under pressure during the previous session, following the release of surprisingly strong US employment data. Job creation in the world’s largest economy during the month of June exceeded analysts’ expectations, improving on the previous reading. This show of resilience by the American economy prompted a rebound in the US dollar from near multi-year lows, as expectations of a Federal Reserve rate cut in July diminished — a dynamic that weighed on gold prices, given the inverse correlation between the two assets. However, the dollar rally has since lost momentum. The “Big Beautiful Bill” has now been passed into law and will add several trillion dollars to the US fiscal deficit. This situation is being watched closely by traders, sparking renewed demand for safe-haven assets — with gold attracting increased flows as a result.
Ricardo Evangelista, ActivTrades
Source: ActivTrader
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