Gold prices were lower in London on Friday morning, as traders refrained from making major bets ahead of the latest U.S. jobs report.
At the time of writing, gold futures were trading about $1,754 per ounce after losing 0.25%. Despite a small advance on Friday, the dollar remained below a one-year high, which is usually inverse to gold prices.
Non-farm payrolls are expected to make up part of the U.S jobs report later today, and this could influence when the Federal Reserve begins to taper assets. In September, Jerome Powell stated that policymakers were in general agreement to begin asset tapering as early as November 2021, provided that the September jobs report was positive.
According to the Labor Department, initial jobless claims decreased to 326,000 last week, the highest number in three months, and further indications of a strengthening labor market.
Recently, the yellow metal has fluctuated within the sideways track, settling below the bearish channel’s resistance. This suggests the short-term bearish trend scenario will stay active as gold tests the $1,735 level to maintain the bearish trend scenario.
Alternatively, if the price breaks $1,770 an ounce, it is likely the fall will stop and the price will rise, resulting in gains that start by crossing over $1,800 an ounce.
Recently, the world’s most valuable bank disclosed institutions are looking at bitcoin as a more viable inflation hedge than gold.
In recent weeks, the trend of funds leaving gold for bitcoin has re-emerged, according to JPMorgan. During the month of May, money was flowing out of bitcoins into gold.
Gold exchange-traded funds have lost more than $10 billion since the beginning of the year, according to the firm. Bitcoin funds have received over $20 billion during the same time period.
This article was originally posted on FX Empire