- Gold rallies to new highs in the $2,770s after the release of US JOLTS jobs data.
- The precious metal was also supported by falling Oil prices which are likely to lead to lower inflation and interest rates.
- XAU/USD trades trades to a new higher high in line with its longer-term bullish trend.
Gold (XAU/USD) rises to a new record high in the $2,770s on Tuesday after the release of lower-than-expected US JOLTS Job Openings data indicated cracks appearing in the US labor market. This makes it more likely the US Federal Reserve (Fed) will slash interest rates to protect growth. Lower interest rates are positive for non-interest paying assets such as Gold.
US JOLTS Job Openings fell to 7.44 million in September from a revised-down 7.861 million in August and below estimates of 7.99 million, according to data from the US Bureau of Labor Statistics (BLS).
Gold rises due to lower Oil prices
Gold had already been on the rise due to falling Oil prices, which declined 6.0% (Brent Crude) on Monday due to the news that Israel only attacked military targets in Iran, leaving its Oil and nuclear installations unaffected.
Cheaper Oil is likely to help maintain lower levels of inflation globally as it reduces fuel and energy costs – a major factor in production, transportation and heating. This, in turn, is likely to accelerate the downward progression of global interest rates, boosting Gold’s attractiveness to investors.
Gold also remains underpinned by safe-haven flows due to the ongoing conflict in the Middle East and the escalation of the war in Ukraine following the news that North Korea has sent troops to Russia.
Technical Analysis: Gold tests top of range
Gold breaks out of the top of its mini range, which stretches from a low of $2,708 to the all-time high at $2,758.
Overall, the yellow metal is in a steady uptrend on all time frames (short, medium and long), which, given the technical principle that “the trend is your friend,” tilts the odds in favor of more upside.
XAU/USD Daily Chart
The break above the top of the range confirms a continuation of the bullish trend up to the next big-figure target level, which lies at $3,000 (round number and psychological level).
Economic Indicator
JOLTS Job Openings
JOLTS Job Openings is a survey done by the US Bureau of Labor Statistics to help measure job vacancies. It collects data from employers including retailers, manufacturers and different offices each month.
Read more.Last release: Tue Oct 29, 2024 14:00
Frequency: Monthly
Actual: 7.443M
Consensus: 7.99M
Previous: 8.04M
Source: US Bureau of Labor Statistics
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.