- Spot Gold has traded comparatively thin through the week after Monday’s massive surge.
- XAU/USD peaked just above $2,140 to kick off the week, holding steady just above $2,020.
- Risk markets will be clamping down on positioning ahead of Friday’s US NFP print.
Gold set new all-time highs this week at $2,144.48 in a hard bid rally early Monday, and the XAU/USD has spent the rest of the week in thin trading after paring away Monday’s opening gains.
Spot Gold has bid slightly lower on the week, down a little over 2% from Monday’s opening prices as investors head into the Friday trading session. Traders will be looking ahead to the latest US Nonfarm Payrolls (NFP) report due in the upcoming American trading session to close out the week.
The US NFP is forecast to see a slight improvement from October’s 150K to 180K new job additions in November, and markets will be hinging on the report with investors hoping for a weak report to help boost odds of a Federal Reserve (Fed) rate cut. Money markets have leaned into a “sooner rather than later” narrative on Fed rate cuts, and investors have run far ahead of policy structure, haggling bids based on whether or not the Fed will cut rates next March.
XAU/USD Technical Outlook
Gold is currently down nearly five and a half percent from Monday’s all-time record bids above $2,140, trading tightly near $2,020.
The 50-day Simple Moving Average (SMA) is confirming a bullish cross of the 200-day SMA near $1,950, and downside action could see a technical bounce from the level as long as bidders maintain control.
The XAU/USD finds itself bidding into a rising trendline from October’s low bids near $1,810, but the week’s downside pressure knocking Spot Gold off of newly-minted all-time highs sees the XAU/USD coiling on the south side of a significant technical barrier from $2,050.
XAU/USD Daily Chart
XAU/USD Technical Levels
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 turns negative near 1.0760
The sudden bout of strength in the Greenback sponsored the resurgence of the selling pressure in the risk complex, dragging EUR/USD to the area of daily lows near 1.0760.
GBP/USD comes under pressure and challenges 1.2500
GBP/USD now rapidly loses momentum and gives away initial gains, returning to the 1.2500 region on the back of the strong comeback of the US Dollar.
Gold retreats from highs on stronger Dollar, yields
XAU/USD trims part of its initial advance in response to the jump in the Dollar's buying interest and the re-emergence of the upside pressure in US yields.
XRP tests support at $0.50 as Ripple joins alliance to work on blockchain recovery
XRP trades around $0.5174 early on Friday, wiping out gains from earlier in the week, as Ripple announced it has joined an alliance to support digital asset recovery alongside Hedera and the Algorand Foundation.
Week ahead – US inflation numbers to shake Fed rate cut bets
Fed rate-cut speculators rest hopes on US inflation data. After dovish BoE, pound traders turn to UK job numbers. Will a strong labor market convince the RBA to hike? More Chinese data on tap amid signs of slow Q2 start.