Gold inter-market: Bullish run to extend ahead of NFP

Gold has seen a strong upward rally so far this week, largely backed by easing expectations of a Fed rate hike this year, after a series of recent dismal US economic data raised concerns over the strength of the US economic recovery.

The US dollar was smashed across the board, with the DXY dragged to fresh six-week lows below 95 levels, mainly driven by heavy sell-off in USD/JPY after Abe’s stimulus fell short of markets’ expectations.

While the US treasury yields also remained under pressure amid persisting risk-off market profile and weaker US equities, which offered all the support required to the gold bulls to clinch three-week highs near $ 1370 levels.

Looking ahead, the key risk event for the bullion remains the US payrolls data due out on Friday, which may throw fresh light on the US interest rates outlook and hence, provide fresh direction for gold.