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PRICE FORECAST: - Gold Rangebound as Market Participants Pause Ahead of Jobs Data.
- US 10Y Yields Hit a Three-Month Low as Gold Ticked Higher.
Gold prices recovered late in the day yesterday before continuing to trickle higher today. Looking at the larger timeframes and the price is caught in a range ahead of US jobs data due tomorrow.
US TREASURY YIELDS AND JOBS DATA
Investors are pausing before the US jobs report, following a turbulent week for precious metals. Despite hitting a record high at the beginning of the week, there was a sharp selloff, bringing the price close to $2000/oz.
Today, US 10Y Yields hit a three-month low, providing support for the precious metal. While the overall outlook for metals is clearer, there may be a retracement in the short-term due to tomorrow's jobs report and next week's Fed meeting, as rate cut expectations increase.
The perfect conditions for metal prices to rise in 2024 are emerging due to increasing demand and the significance of metals in tech production. The uncertainty in global geopolitics and the outcome of the upcoming FOMC meeting do not affect the positive outlook for the metals sector. In terms of economic data, tomorrow's focus will be on initial jobless claims, while Friday's NFP and Jobs report gains attention due to a decrease in job openings and a softer ADP print. If there is a significant miss on Friday, it could result in further weakness for the dollar and a likely boost for gold prices.
TECHNICAL OUTLOOK
XAUUSD
Form a technical perspective, Gold is caught n a range following the explosive move higher to start the week. We appear to be caught between the 2020 and 2031 levels at present with any spikes above or below these levels failing to find acceptance.
There is every chance that this continues heading into the NFP release on Friday. Either way the weekly timeframe now looks intriguing with a massive shooting star candlestick as things stand. However, with two days left there is a chance that this could change.
Key Levels to Keep an Eye On:
Resistance levels: 2032.00 - 2041.00 - 2050.00
Support levels: 2020.00 - 2010.00 - 2000.00
