Gold prices fell yesterday after the U.S. dollar rebounded post-ECB and stronger than expected initial jobless claims data. The jobs market is becoming increasingly more important to the overall Federal Reserve picture as inflation continues to soften. The robust employment numbers play a role in bolstering hawkish support. From an ECB perspective (EUR being a large component of the Dollar Index), markets did not get behind the euro leaving the greenback room to rally. Naturally, gold slipped but with key U.S. economic data ahead including Non-Farm Payroll (NFP) and ISM services data (see economic calendar below), short-term price action is dependent on the outcomes of the data.
