XAUUSD is neutral awaiting the NFP!
Analyzing the XAU/USD (Gold) firsthand, I observe an appeal as a safe haven on Fridays due to geopolitical risks and China's economic concerns. These factors, coupled with diminished expectations for aggressive policy easing by the Fed, seem to curb further gains for gold. Traders also appear hesitant to place aggressive bets before the US monthly jobs report. On Thursday, the gold price moved little, hovering around $2,040, paring early gains in the American session. The US Dollar faced slight pressure following mixed data from the United States and the minutes from the FOMC meeting. At its mid-December meeting, the Fed had considered rate cuts. The ADP report indicated that 164K new jobs were added, significantly more than the 115K anticipated, signaling a job market aligned with pre-pandemic levels, indicating a more stable situation. On Friday, the United States will release the Nonfarm Payrolls (NFP) report, expected to show 170K new jobs in September. While investors await these critical data, the gold price (XAU/USD) is slightly higher but lacks follow-through as traders await the release of the employment details. Geopolitical risks and China's economic woes continue to influence investor sentiment and provide some support to the gold price. The 10-year US Treasury yield remains steady near 4.0%, capping the XAU/USD. Positive US macro data have led investors to lower their expectations for the number of rate cuts by the Fed in 2024.
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