The Gold price (XAU/USD) maintains a positive bias for the second consecutive day, as investors closely monitor the looming US jobs report, anticipating clues about the future direction of the Federal Reserve’s rate-hiking cycle. The continued decline in US Treasury bond yields, driven by expectations of a potential rate cut by the Federal Reserve in June 2024, is seen as a contributing factor to the recent stability in the precious metal. Additionally, geopolitical tensions in the Middle East and concerns over China’s economic conditions have enhanced the appeal of gold as a safe-haven asset.
However, despite these supporting factors, the Gold price remains below the psychological threshold of $2,000, as a generally positive sentiment in the equity markets limits the appetite for fresh buying. The cautious stance of investors ahead of the US jobs report, which is expected to influence the Federal Reserve’s policy decisions, also restrains any significant movements in the XAU/USD.
Anticipation Surrounding US Jobs Report The upcoming US monthly jobs data, or the non-farm payrolls (NFP) report, is expected to shed light on the health of the US labor market. Market expectations suggest an addition of 180,000 jobs in October, compared to 336,000 in the previous month, with the unemployment rate anticipated to remain steady at 3.8%. Any significant deviation from these projections could introduce volatility in the financial markets, potentially driving demand for the safe-haven metal.
Technical Analysis and Future Outlook From a technical standpoint, the Gold price continues to hover within close range of its multi-month peak, suggesting the potential for further upward movement. While the $2,000 mark poses a significant barrier, a sustained breakthrough above this level could pave the way for a push toward the next key resistance at the $2,008-2,010 range, the multi-month peak reached last Friday.
Conversely, the immediate downside is safeguarded by the support at the $1,980 level, followed by the weekly low near $1,970. If selling pressure persists, the Gold price might find support at the $1,964 level before potentially descending to the $1,954-1,953 region.
Despite the current range-bound movement, the precious metal is on track to register modest weekly losses, ending a three-week winning streak that saw it reach a five-month high last week. Investors are advised to closely monitor the US jobs data and geopolitical developments, as these factors are likely to influence Gold’s near-term trajectory.