- XAU / USD came under renewed downward pressure early in the US session.
- Nonfarm payrolls in the US were down 140,000 in December.
After the sharp fall observed in the first European session, the pair XAU / USD it spent the last few hours moving sideways near $ 1,890. However, with the market’s initial reaction to the US labor market report, the pair fell to its lowest level since December 30 at $ 1,876. However, the dollar appears to be struggling to preserve its strength and the XAU / USD last traded at $ 1,888, shedding 1.3% on the day.
USD weakens after NFP report
In the second half of the week, the precious metal struggled to find demand as increased prospects for additional government spending in the US gave a boost to US Treasury yields.
The yield on the 10-year US Treasury bond rose nearly 13% since Wednesday and helped the dollar outperform its rivals while allowing the downward pressure on XAU / USD to remain intact.
Meanwhile, monthly data released by the US Bureau of Labor Statistics on Friday revealed that non-farm payrolls in December fell by 140,000. This reading disappointed market expectations of a 71,000 rise by a wide margin and the US Dollar Index (DXY) soared to 90.00.
However, the DXY quickly reversed its direction and fell into negative territory near 89.70 as the disappointing US employment report is likely to force the Federal Reserve to remain subdued.
Technical levels
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