XAU/USD Current price: $2,670.71
- Financial markets remained cautious, with safe-haven assets leading the way.
- Market players shift the focus to the US Nonfarm Payrolls report.
- XAU/USD keeps posting higher highs on a daily basis, aims to retest records.
Spot Gold is up for a third consecutive day, hitting $2,678.16 a troy ounce during European trading hours, holding nearby in a thinned American session amid a United States (US) holiday. Speculative interest maintained the cautious stance despite a lighter macroeconomic calendar, resulting in generally stronger safe-haven assets. XAU/USD trades comfortable above $2,670, moving one step closer to record highs in the $2,726 price zone.
Data-wise, US-based employers announced 38,792 cuts in December, a 33% decrease from the 57,727 cuts announced one month prior. According to the Challenger Job Cuts report, it is up 11% from the 34,817 cuts announced in the last month of 2023. The report adds to encouraging employment-related figures ahead of the Nonfarm Payrolls (NFP) report.
The December NFP report is expected to show that the US economy created 160,000 new positions, another solid figure. At the same time, the Unemployment Rate is foreseen to remain steady at 4.2%. If that’s the case, financial markets will likely welcome the headlines that would allow the Federal Reserve’s (Fed) recently adopted tighter path when they meet on January 28-29.
XAU/USD short-term technical outlook
From a technical point of view, XAU/USD's bullish potential has increased. The pair posted a higher high and a higher low for a third consecutive day while extending gains beyond all its moving averages. The 20 Simple Moving Average (SMA) lacks directional strength at around $2,638, while the 100 SMA nears the shorter one with a bullish slope from below. At the same time technical indicators head firmly north within positive levels, favoring a continued advance.
In the near term, and according to the 4-hour chart, XAU/USD is also poised to extend its advance. The pair currently develops above all its moving averages, with a bullish 20 SMA advancing beyond the longer ones. The 200 SMA stands directionless at $2,645.98, providing support. As per technical indicators, the Momentum indicator grind higher within positive levels, while the Relative Strength Index (RSI) indicator retreats modestly from near overbought readings, not enough to support a bearish movement.
Support levels: 2,664.10 2,645.90 2,632.70
Resistance levels: 2,678.20 2,692.15 2,726
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.
Recommended Content
Editors’ Picks

EUR/USD jumps back above 1.1000 on renewed US Dollar sell-off
EUR/USD is posting sizeable gains above 1.1000 in early Europe on Monday. EU prepares for retaliatory tariffs and rekindles the global trade war and US recession fears, drowning the US Dollar again aross the board. Traders now look to the EU Sentix and Retail Sales data.

GBP/USD holds recovery gains above 1.2900 amid fresh US Dollar weakness
GBP/USD clings to recovery gains above 1.2900 in European trading on Monday. The pair capitalizes on renewed US Dollar weakness as risk sentiment takes a fresh hit, with European traders hitting their desks. Trump's tariffs-led US recession fears and dovish Fed bets keep the USD undermined.

Gold price rebounds swiftly from multi-week low; lacks follow-through
Gold price reverses an Asian session slide to over a three-week low, though it lacks follow-through. Recession fears continue to weigh on investor sentiment and benefit the safe-haven commodity. Bets for more aggressive Fed rate cuts undermine USD and also lend support to the XAU/USD pair.

Crypto market wipes out $1 billion in liquidation as Asian markets bleed red
The crypto markets continue to decline on Monday, with Bitcoin falling below $78,000. The Asian markets also traded in the red, with Japan’s stock market extending losses to 8.5%, its lowest level since October 2023.

Strategic implications of “Liberation Day”
Liberation Day in the United States came with extremely protectionist and inward-looking tariff policy aimed at just about all U.S. trading partners. In this report, we outline some of the more strategic implications of Liberation Day and developments we will be paying close attention to going forward.

The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.