Buyers step in at the figure
Non-farm payrolls were just weak enough to keep the market comfortable with the idea of two more Fed rate cuts this year.
In turn, gold has jumped $20 in a sharp reversal higher to end a two-day rout.
In my view, there is an unceasing and growing appetite to buy gold from fund managers and retail. We’re still in the early innings. There was certainly a flush out of some weak hands yesterday but the bounce today — especially if it lasts through the close — is a great sign.
Ultimately, what matters is that we’re in a global easing cycle. Today’s 50 bps RRR cut from China underscores that. Undoubtedly there will be an ebb and flow but until it ends, gold will have a tailwind.