Gold price is looking to recover further ground from two-month lows of $1,617. The focus now shifts towards the all-important United States (US) Nonfarm Payrolls data. The yellow metal could extend its bounce if figures miss expectations, FXStreet’s Dhwani Mehta reports.

All eyes on United States Nonfarm Payrolls data

“The US Federal Reserve (Fed) sees interest rates increasing until inflation is brought down, with the peak rate seen as higher than previously estimated. The Bank of England (BOE) hiked the policy rate by 75 bps but projected that Britain will sink into a deeper recession while adding that rates are likely to rise less than the market’s expectations. The policy announcements suggest that higher borrowing costs are likely to stay for longer, which could keep any upside attempts in the non-interest-bearing Gold price short-lived.”

“A bigger-than-expected decline in the payrolls is likely to hint at potential smaller rate increases by the Fed in the coming months, as the weak print would revive economic slowdown fears. In such a case, Gold price could extend its rebound. But the upside may likely remain limited, as investors would look out for next Thursday’s US Consumer Price Index (CPI) release for insights on the Fed’s next rate hike move.”

See – NFP Preview: Forecasts from 10 major banks, further significant job growth