Gold Price Forecast: XAU/USD to preserve bullish momentum on weak NFP report

Gold Price closed the choppy week virtually unchanged. The focus shifts to the highly-anticipated November jobs report from the US and coronavirus headlines from China, FXStreet’s Eren Sengezer reports.

China Covid jitters, US NFP to drive XAU/USD’s action

“There won’t be any high-impact data releases on Monday and investors should stay focused on coronavirus headlines from China.”

“On Thursday, the ISM will release the Manufacturing PMI data for November. The market reaction to S&P Global’s PMI surveys suggests that the US Dollar might come under selling pressure if the ISM’s PMI report shows that price pressures continued to ease in November while the activity contracted. In that scenario, Gold could push higher with the initial reaction.”

“The US Bureau of Labor Statistics will publish labor market data for November on Friday. Nonfarm Payrolls (NFP) are projected to decline by 30K following October’s growth of 261K. A negative print is likely to weigh heavily on the US Dollar and open the door for a bullish XAU/USD action ahead of the weekend. On the other hand, a positive NFP surprise should have the opposite effect on financial markets and force Gold price to decline.”