Gold spot prices staged a surprising comeback, reaching $1,833.00 in late Friday trading, following a remarkable US Non-Farm Payrolls (NFP) report that defied expectations. Despite starting the week notably lower than Monday’s opening prices, XAU/USD has shown resilience in the face of turbulent market conditions.
The unexpected addition of 26,000 jobs to the US job market, a significant beat against the forecasted 170,000, sent shockwaves through the market. This figure was further boosted by a revision of the previous reading from 227,000 to 227,000.
Throughout most of the week, spot Gold prices faced downward pressure due to soaring US Treasury yields, prompting investors to seek refuge in safe-haven assets and drive the US Dollar’s ascent.
As the market takes a momentary breather from the surge in Treasury yields, the coming week is poised to reintroduce challenges. Investors will closely monitor the US Producer Price Index (PPI) figures and await the release of the Federal Reserve’s (Fed) latest meeting minutes. These minutes will be scrutinized for hints regarding the central bank’s future stance on interest rates.
XAU/USD Technical Analysis
Despite Friday’s remarkable rebound in Gold prices, XAU/USD continues to grapple with a bearish outlook. It remains down by nearly 6% from its mid-September peak, which saw prices near $1,950.00.
While a bullish relief rally may be in the cards, the XAU/USD still faces a significant challenge. The price action remains far below the 200-day Simple Moving Average (SMA) around $1,930.00. Additionally, the 50-day SMA has confirmed a bearish cross with the longer-moving average, signaling a continued bearish sentiment among Gold traders.
As the precious metal navigates these technical challenges and adapts to market dynamics, the resilience displayed in the face of unexpected economic data remains a notable point of interest for analysts and investors alike.