Gold how will perform on Friday nfp news

Gold's Performance on Friday (NFP News Day) is Likely to be Influenced by the Following Factors:

1. Historical Trends: Gold has shown an inverse correlation with the Nonfarm Payrolls (NFP) report, particularly in the short term. Historically, gold tends to fall when the NFP report is better than expected, and conversely, it tends to rise when the report is weaker than expected.
2. Market Expectations: The market is expecting a rise of 190,000 in June's NFP report. If the actual report meets or exceeds this expectation, it could be positive for the dollar and potentially negative for gold. Conversely, if the report misses expectations, it could lead to a negative reaction in the dollar and a positive one for gold.
3. Investor Sentiment: Investors' reactions to the NFP report can be influenced by how the report affects the Fed's monetary policy outlook. If the report suggests a strong labor market, the Fed may be more likely to tighten monetary policy, which could be positive for the dollar and negative for gold.
4. Timing of Release: The NFP report is released on the first Friday of the month, and its impact on gold prices tends to weaken slightly by the fourth hour after the release. This suggests that any price movements related to the NFP report may be more pronounced earlier in the day.
5. Magnitude of Surprise: The magnitude of the surprise in the NFP report can also influence gold prices. Larger surprises, whether positive or negative, tend to have a greater impact on gold prices than smaller surprises.

Given these factors, gold is likely to be sensitive to the NFP report on Friday. If the report is stronger than expected, gold may face downward pressure, while a weaker-than-expected report could lead to an uptick in gold prices. Investors should monitor the report closely and consider the broader market context, including the Fed's policy outlook, when assessing the potential impact on gold.