Gold Price Forecast: XAU/USD dips for the second day as US labor market data sparks recession fears

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Gold Price Forecast: XAU/USD dips for the second day as US labor market data sparks recession fears Gold XAUUSD Metals

headed down spurred by a jump in US Initial Jobless Claims for the week ending on April 1, which increased by 228K above forecasts of 200K. Additionally, data from the week before April 1 was upward revised from 198K to 246K, painting a dismal scenario for the US labor market.

US Treasury bond yields, particularly the most sensitive to interest rates, the 2-year, dropped to 3.674% before reversing their course and is up at 3.783%. Lately, the St. Louis Federal Reserve President James Bullard said that Q1’s incoming data is stronger than expected, adding that financial conditions are less tighter than the 2007-2009 crisis. Bullard said inflation would be “sticky going forward” and that the Fed “needs to stay at it” to get inflation back to its 2% target.ING Analysts commented that flows toward XAU were due to the banking crisis.

 

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