Ahead of the US NFP, the XAUUSD is expected to trend southward toward $1,700

As the US dollar strongly recovers, the gold price loses up its recovery gains. The USD is supported by risk aversion before the crucial US NFP. XAUUSD continues to get closer to $1,700.

As the US dollar enjoys resurging demand amid a risk-off market environment, the price of gold is trading with modest losses and is threatening to hit nine-month lows of $1,832.

Investors process the news that Shinzo Abe, a former Japanese prime minister, died as a result of an unusual occurrence that occurred in Japan. He was struck in the chest twice from behind by a shotgun, and was taken to the hospital right afterwards. but died from his injuries a few hours later.

Furthermore, fears of an impending recession, aggressive Fed rate rise forecasts, and the decline in the EUR/USD pair towards parity are all favorable factors for the dollar at the expense of gold. The US Treasury rates are losing attractiveness as risk-off flows continue to dominate, but government bonds are still the preferred investment.

The markets are anticipating the publication of the crucial US Nonfarm Payrolls data, with the headline figure expected to reach 300K in June compared to the 268K recorded in May. The US unemployment rate is anticipated to remain unchanged at the previous month’s level of 3.6 percent.

Whatever the conclusion of the US job market statistics may be, the dollar is likely to continue to be in a win-win scenario. However, because it is still dedicated to fighting the inflation monster, the Fed will maintain its aggressive tightening approach. In the foreseeable future, the shiny metal is still vulnerable to negative concerns.

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