XAU/USD ATH: Will The Bullish Trend Continue?
XAU/USD experienced a hesitant trading session on Thursday, oscillating between minor gains and losses. Investors remained cautious, refraining from significant moves in anticipation of the crucial U.S. jobs data set to release before the weekend.
The upcoming November nonfarm payrolls report, due in a few hours, is expected to shed light on the labor market's condition, potentially influencing the Federal Reserve's policy direction. This data is anticipated to be a key driver of volatility in major financial markets.
Predictions suggest that U.S. employers added 170,000 jobs in November, keeping the unemployment rate steady at 3.9%. Average hourly earnings are projected to increase by 0.3% month-on-month, with the annual figure possibly softening to 4.0% from 4.1%.
Despite gold's fundamentally bullish outlook, traders are seeking more clarity on the U.S. economic landscape before committing to bullish positions again, particularly after the recent false breakout that led to a significant sell-off.
Looking at potential outcomes, a strong positive surprise in nonfarm payroll data could diminish expectations for monetary policy easing in 2024, potentially driving up Treasury yields and the U.S. dollar, which might negatively impact gold.
On the flip side, weaker-than-expected NPF data could reignite recession fears, bolstering prospects for dovish interest rates in the upcoming year. Such a scenario might lead to lower yields and a weaker dollar, benefiting gold prices.
Gold's recent peak, marking a new record before a sharp decline, indicated that the anticipated bullish breakout might have been misleading.
Despite a recent slowdown in gold's upward momentum, our outlook for XAU remains bullish over the long term, with expectations for a continued rise.
Should gold resume its rise, immediate resistance lies at $2,050, followed by the $2,070/$2,075 zone. A breach above these levels could shift our attention to the $2,150 target.
Conversely, should gold face further declines, support is found around $2,011. Breaking below this level could signal a more substantial bearish trend, with the next target at $1,990.
Additionally, the recent formation of a golden cross between the SMA 50 and SMA 200 indicators reinforces our short-term positive stance on gold, suggesting the likelihood of sustained upward movement.
The upcoming November nonfarm payrolls report, due in a few hours, is expected to shed light on the labor market's condition, potentially influencing the Federal Reserve's policy direction. This data is anticipated to be a key driver of volatility in major financial markets.
Predictions suggest that U.S. employers added 170,000 jobs in November, keeping the unemployment rate steady at 3.9%. Average hourly earnings are projected to increase by 0.3% month-on-month, with the annual figure possibly softening to 4.0% from 4.1%.
Despite gold's fundamentally bullish outlook, traders are seeking more clarity on the U.S. economic landscape before committing to bullish positions again, particularly after the recent false breakout that led to a significant sell-off.
Looking at potential outcomes, a strong positive surprise in nonfarm payroll data could diminish expectations for monetary policy easing in 2024, potentially driving up Treasury yields and the U.S. dollar, which might negatively impact gold.
On the flip side, weaker-than-expected NPF data could reignite recession fears, bolstering prospects for dovish interest rates in the upcoming year. Such a scenario might lead to lower yields and a weaker dollar, benefiting gold prices.
Gold's recent peak, marking a new record before a sharp decline, indicated that the anticipated bullish breakout might have been misleading.
Despite a recent slowdown in gold's upward momentum, our outlook for XAU remains bullish over the long term, with expectations for a continued rise.
Should gold resume its rise, immediate resistance lies at $2,050, followed by the $2,070/$2,075 zone. A breach above these levels could shift our attention to the $2,150 target.
Conversely, should gold face further declines, support is found around $2,011. Breaking below this level could signal a more substantial bearish trend, with the next target at $1,990.
Additionally, the recent formation of a golden cross between the SMA 50 and SMA 200 indicators reinforces our short-term positive stance on gold, suggesting the likelihood of sustained upward movement.
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