Gold's path of least resistance still to the upside
Gold has been in consolidation mode in the last few sessions ahead of key US data. But the slow and steady climb is exactly what the bulls want to see, reinforcing a bullish outlook for gold. Shallow pullbacks, coupled with higher highs and higher lows, are the hallmarks of a strong upward trend.
Right now, the trend remains firmly bullish and will likely stay that way unless we see a lower low emerge. Any dips are expected to find support at previous resistance levels, like $2477, where the 21-day exponential moving average is also converging. The bullish trend line that's been in place since February, currently around $2,450, is another key support level to keep an eye on.
As for the upside, with gold trading near its all-time high, there’s only one key level to watch—the all-time high itself, set just last month at $2,531.
By Fawad Razaqzada, market analyst at FOREX.com
Right now, the trend remains firmly bullish and will likely stay that way unless we see a lower low emerge. Any dips are expected to find support at previous resistance levels, like $2477, where the 21-day exponential moving average is also converging. The bullish trend line that's been in place since February, currently around $2,450, is another key support level to keep an eye on.
As for the upside, with gold trading near its all-time high, there’s only one key level to watch—the all-time high itself, set just last month at $2,531.
By Fawad Razaqzada, market analyst at FOREX.com
Note
Following the release of a weaker US jobs report, gold initially rallied to close in on a new all-time high before dipping back as optimism over a 50 basis point cut in September Fed. But the precious metal has found renewed strength over the past hour or so, on the back of this comment from Fed's Waller:
*IF APPROPRIATE, WILL ADVOCATE FOR 'FRONT-LOADING' CUTS
This comes after the non-farm payrolls data was a lot weaker than expected when you take revisions into account, suggesting the jobs market is cooling more than expected, in line with other labour indicators released earlier this week. While August was weak, the revision to the already-week July report meant employment only grew by 89,000 that month. This was the weakest jobs report since the days of pandemic in December 2020. What’s more, private-sector hiring is now averaging just +96,000 over the last three months, falling from a 3-month average of 146,000 in July. This is alarming. With the jobs market softening more than expected, the Fed cannot and should not wait any longer to cut rates
By Fawad Razaqzada, market analyst at FOREX.com
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