Gold $XAU finally put in a decent rebound this week

Rallying all the way up from around 3890, it reclaimed $4000, reached a weekly high near 4150, and ultimately closed around 4080, up nearly 5%

I think the key driver behind this rally was still a repricing of US macroeconomic expectations:

After the Democrats won the midterm elections, the market began pricing in the possibility of greater constraints on fiscal policy. The dollar and Treasury yields fell, naturally benefiting gold

However, Friday’s nonfarm payrolls data came in well above expectations, pouring cold water on gold 😇

Strong employment data gave the Fed even more reason to continue tightening monetary policy, and gold pulled back from its weekly high

Even so, the weekly performance was still quite impressive

I’m currently optimistic about gold in the short term, especially watching whether $4000 can turn from resistance into support

If it can continue to hold this level next week, this week’s gains could develop into a more sustained rebound