Share:
  • Gold price treads water below $2,000, awaits US Nonfarm Payrolls for a fresh impetus.
  • US Dollar stalls sell-off with US Treasury bond yields as risk tone turns cautious.
  • Gold price is poised for a fresh advance amid a bullish daily technical setup.

Gold price is gathering pace for a fresh run toward the $2,000 threshold early Friday, as the United States Dollar (USD) and US Treasury bond yields consolidate their weekly losses ahead of the all-important US Nonfarm Payrolls (NFP) data release.

All eyes on the United States Nonfarm Payrolls data

Gold price is finding support from a subdued performance in the US Dollar and the US Treasury bond yields, as they struggle to stabilize, following the steep losses incurred in the aftermath of a non-committal US Federal Reserve (Fed) policy outlook.

The sell-off in the US Dollar extended on Thursday, as the benchmark 10-year US Treasury bond yields breached the 4.70% key level on increased expectations that the Federal Reserve is done with hiking rates. Further, a hawkish pause from the Bank of England (BoE) boosted the GBP/USD pair, weighing down on the US Dollar. The BoE kept the policy rate steady at 5.25%, as widely expected but three policymakers voted in favor of a hike, suggesting that the door remains open for future rate hikes.

Downbeat US weekly Jobless Claims data exacerbated the pain in the US Dollar, motivating Gold buyers to briefly regain the $1,990 level. Initial Jobless Claims in the US increased by 5,000 in the week ending October 27 to the highest level in seven weeks. However, the less hawkish Fed-led global risk rally extended and the US stocks surged nearly 2.0% on Thursday, reducing the safe-haven demand for Gold price, as well as, the US Dollar.

Gold price managed to stay afloat and ended the day in the green near $1,985, as markets priced an 80% chance that the Fed will leave rates unchanged in December, according to the CME FedWatch tool.

Looking ahead, all eyes remain on the US labor market report, with the key focus on the headline NFP figure, which is foreseen at 180K in October, as against a 336K increase in September. Average Hourly Earnings are seen rising 4.0% in the reported period, compared with a 4.2% increase in September. A weak headline NFP print and soft wage inflation are likely to confirm market expectations that the Fed’s tightening cycle is likely over, triggering a fresh US Dollar selling wave. In such as case, Gold price could see a fresh upside to retake the $2,000 barrier.

Conversely, a big beat on the US jobs data is needed to reinforce December Fed rate hike bets, which could help the US Dollar recover some of its weekly losses. Gold price is likely to resume its correction toward $1,950 on a strong US NFP report.

Gold price technical analysis: Daily chart

Gold price found fresh demand on Thursday, although remained capped below the $2,000 level. Looking ahead, risks remain tilted to the upside for Gold price, as several Bull Crosses remain in play and the 14-day Relative Strength Index (RSI) indicator sits just beneath the overbought territory.

The 21-day Simple Moving Average (SMA) broke above all the key major SMAs, confirming multiple Bull Cross earlier this week.

If the Gold price rebound gains traction, immediate resistance is seen at Wednesday’s high of $1,993, above which the $2,000 threshold will be retested.

Acceptance above the multi-month high of $2,009 is critical to reviving the uptrend toward the mid-May high near $2,020.

On the downside, strong support awaits at Wednesday’s low of $1,970. A failure to resist above the latter will target the static support at $1,963, paving the way toward the $1,950 psychological level.

(This story was corrected on November 3 at 09:38 GMT to say that Gold buyers briefly regained the $1,990 level, not $1,900.)

Share: Feed news

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Follow us on Telegram

Stay updated of all the news

Join Telegram

Recommended Content


Follow us on Telegram

Stay updated of all the news

Join Telegram

Recommended Content

Editors’ Picks

AUD/USD prints slight gains post-FOMC minutes, mixed Aussie PMIs

AUD/USD prints slight gains post-FOMC minutes, mixed Aussie PMIs

The Australian Dollar posted minuscule gains on Wednesday against the US Dollar, after the release of the Federal Reserve’s January meeting minutes emphasized policymakers remain hesitant to begin to ease policy. Therefore, the pair exchanges hands at 0.6550, down by 0.02% as the Asian session begins.

AUD/USD News

EUR/USD drifts into Wednesday's top end after Fed Minutes, markets pivot to PMI wait

EUR/USD drifts into Wednesday's top end after Fed Minutes, markets pivot to PMI wait

EUR/USD drifted into the midrange before a late break into the high side on Wednesday after the US Federal Reserve (Fed) published its latest Minutes which showed policymakers continue to remain focused on downside risks.

EUR/USD News

Gold price hovers around the 50-day SMA as traders eye flash PMIs

Gold price hovers around the 50-day SMA as traders eye flash PMIs

Gold price is virtually unchanged after the US Federal Reserve released January’s meeting minutes, which reassured market participants that the Fed is in no rush to cut rates in the near term.  The XAU/USD trades within the $2020-30 range.

Gold News

Worldcoin price dips 25% as WLD holders cash in on faded AI narrative

Worldcoin price dips 25% as WLD holders cash in on faded AI narrative

Worldcoin price recorded a striking rise between February 5 and 19, recording a new all-time high since its debut in the market in August last year. The latest surge comes on the back of the AI crypto narrative, but as this theme fades, the ‘buy the rumor sell the news’ situation continues to play out for the AI token.

Read more

Nvidia Stock Earnings: NVDA Q4 results trounce consensus

Nvidia Stock Earnings: NVDA Q4 results trounce consensus

Nvidia beat earnings consensus from Wall Street by a large margin on Wednesday, and the stock jumped more than 3% afterhours. Consensus had been $4.64 in adjusted EPS for the quarter ending in December, but Nvidia posted $5.16.

Read more

Majors

Cryptocurrencies

Signatures