Gold likely to remain rangebound with a bearish outlook next week

economictimes.indiatimes.com:

Ten-year US yields rose to the highest level since October 2022 as the yields rose to 4.2043% before falling on the US non-farm payroll report released Friday. Global rating agency Fitch, which had kept the US Government's credit on a negative watchlist in May, downgraded the US government's credit rating to AA+ from AA on anticipated fiscal deterioration over the next three years, a high and growing general government debt burden, social security concerns and governance issues. The reaction so far is largely muted in the financial markets.

The Biden Administration strongly opposed the rating agency's move. Another major development of the week was Saudi Arab extending its voluntary production cut of 1 mbpd into September with a possibility of deepening cuts. Crude oil has been on a tear on supply cuts announced by Russia and Saudi Arabia.

Elsewhere, China continued to announce more steps to stimulate its beleaguered economy and to support consumption. If the Chinese economy finds its footing, crude oil, and other industrial commodities will rise further, which may complicate the central banks' task of reining in inflation. Bank of England hiked rates by 25 bps, which was in line with expectations.

The central bank will assess the incoming data to decide on its future course of its monetary policy. The US nonfarm payroll report for July was somewhat soft in terms of job additions as the US employers added 187K jobs in July as against the forecast of 200k jobs. The previous two months' figure was revised lower by 49k.

This year jobs added have been revised continuously lower for the first half of the year. Bright aspects of the monthly job report include the unemployment rate and earnings. The unemployment rate in July