Last Friday’s NFP job report rose 943,000 topping expectations of 870,000, improving market sentiment in general and boosting investors’ risk appetite. As a result, safe havens like gold which usually moves inversely to the dollar dropped almost 5%.

The yellow metal dropped intensely from levels of $1800 to break the support of $1760 area all the way to hit a low of $1680. But it wasn’t just the NFP and the unemployment rate, it was also poor liquidity in the markets. A 24K contracts sell-off obviously shocked investors and safe haven bulls. Other precious metals like Silver also tumbled by 7%.

*Gold on the daily frame*

The USD however coursed highs straight after the strong NFP job figures as shown below, but not as intensely as the Feds June meeting. It was a casual strong-figure after-effect.  

*USD on the daily frame*

In other commodities, Oil also took the L earlier today after posting its biggest weekly loss on Friday. Due to the most popular strain of the corona-virus era, the delta variant which has radically affected oil prices in addition to China tightening restrictions and curbing travel after the summer season boom. This comes after another covid-19 wave that has hit China by surprise especially after they have recovered.

Oil continued its losing streak to slide 4% on the back of fuel demand concerns. Brent crude dropped to $67.87 while U.S. WTI fell more than 4% to $65.38 after touching a low of $65.