XAU/USD Technical analysis
While US rates hit a three-month high over 4%, the gold price oscillates in a tight range below $1840.00.
The Dollar Index is coping with wild oscillations, which are often followed by a volatility decrease.
Tight US labour market likely to soften off ahead despite reduced job posts on employment sites.
In the Asian session, the gold price (XAU/USD) has broken below the back-and-forth auction developed below the important barrier of $1,840.00. After a vertical upward movement to $1,844, the precious gold has progressively retraced.
The US Dollar Index (DXY) is coping with extreme oscillations, which are often followed by a volatility decrease. Futures for the S&P 500 have relinquished their little gains and are again adding to Wednesday's losses, indicating a return to the risk-aversion trend. In the meanwhile, 10-year US Treasury rates have reached a new three-month high of 4.01 percent.
According to the Wall Street Journal (WSJ), prominent online recruiting firms ZipRecruiter Inc. and Recruit Holdings Inc reported a drop in the number of job ads in December. Contrary to that, the US Department of Labor reported large job opportunities in December.
The Government underlined that additional employment are coming from restaurants, hospitals, nursing homes, and child-care facilities and not from enterprises. In light of the gloomy economic outlook, shark producers and major IT corporations are focusing on layoff measures. Hence, the labour market might cool down sooner and the Federal Reserve (Fed), which is increasing rates to slow GDP and inflation would contemplate the further fall in the policy tightening pace.
Gold technical analysis
Gold price is battling to extend its reversal move above the horizontal barrier indicated from February 21 high at $1,843.90 on a two-hour chart. Previously, the precious metal breached the downward-sloping trendline drawn from the February 9 high of $1,890.27.
A mean reversion to the 20-period Exponential Moving Average (EMA) around $1,831.50 is largely anticipated after a vertical surge.
The Relative Strength Index (14) has not ceded the positive range of 60.00-80.00, suggesting that the impetus to the higher is still alive.
The Dollar Index is coping with wild oscillations, which are often followed by a volatility decrease.
Tight US labour market likely to soften off ahead despite reduced job posts on employment sites.
In the Asian session, the gold price (XAU/USD) has broken below the back-and-forth auction developed below the important barrier of $1,840.00. After a vertical upward movement to $1,844, the precious gold has progressively retraced.
The US Dollar Index (DXY) is coping with extreme oscillations, which are often followed by a volatility decrease. Futures for the S&P 500 have relinquished their little gains and are again adding to Wednesday's losses, indicating a return to the risk-aversion trend. In the meanwhile, 10-year US Treasury rates have reached a new three-month high of 4.01 percent.
According to the Wall Street Journal (WSJ), prominent online recruiting firms ZipRecruiter Inc. and Recruit Holdings Inc reported a drop in the number of job ads in December. Contrary to that, the US Department of Labor reported large job opportunities in December.
The Government underlined that additional employment are coming from restaurants, hospitals, nursing homes, and child-care facilities and not from enterprises. In light of the gloomy economic outlook, shark producers and major IT corporations are focusing on layoff measures. Hence, the labour market might cool down sooner and the Federal Reserve (Fed), which is increasing rates to slow GDP and inflation would contemplate the further fall in the policy tightening pace.
Gold technical analysis
Gold price is battling to extend its reversal move above the horizontal barrier indicated from February 21 high at $1,843.90 on a two-hour chart. Previously, the precious metal breached the downward-sloping trendline drawn from the February 9 high of $1,890.27.
A mean reversion to the 20-period Exponential Moving Average (EMA) around $1,831.50 is largely anticipated after a vertical surge.
The Relative Strength Index (14) has not ceded the positive range of 60.00-80.00, suggesting that the impetus to the higher is still alive.
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