Gold (XAU/USD) trades on the front foot on Thursday as the US Dollar (USD) weakens amid rumors of a potential intervention by Tokyo after the Japanese Yen (JPY) hit a 40-year low earlier this week.
The Greenback extended its losses following a weaker-than-expected US Nonfarm Payrolls (NFP) report
At the time of writing, XAU/USD trades around $4,120, up nearly 2.20% on the day. The US Dollar Index (DXY), which tracks the Greenback’s value against a basket of six major currencies, trades around 100.75, hitting a two-week low. Data released by the US Bureau of Labor Statistics (BLS) showed the US economy added 57K jobs in June, well below market expectations of 110K.
Meanwhile, May’s payrolls were revised lower to 129K from the previously reported 172K. Meanwhile, the Unemployment Rate unexpectedly edged lower to 4.2% from 4.3% in May. Average Hourly Earnings rose 0.3% MoM and 3.5% YoY in June, matching market expectations.