The US Dollar Index extends its movement in the upward trajectory following the upbeat US labor report, which showed nonfarm payrolls rose to 943K, beating the market expectations of an 870K increase.
Gold breaks the choppy range surrounding $1,760, taking offers around $1,755, during the initial Asian session on Monday, after declining the most since mid-June the previous day.
Although the early signals for the key jobs report were sluggish, the US Bureau of Labor Statistics renewed optimism with July month’s figures.
With the firmer employment data underpinning the US economic recovery hopes, which earlier faded, the US Dollar Index rose the most in 18 days on Friday.
Elsewhere, the Delta covid variant keeps firming its grips in the developed economy and poses a serious threat to the market sentiment, likely favoring the US dollar’s safe-haven demand.
Given the light calendar in Asia, gold traders will keep their eyes on the risk factors while waiting for China’s headlines inflation data.
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