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Gold Price Struggles Amid US Dollar Demand

Gold Price Struggles Amid US Dollar Demand

Gold Price Struggles in gaining momentum on Friday, remaining within a consistent trading range before the European session. The resurgence in US bond yields bolstered demand for the US Dollar, limiting gold’s ascent ahead of the NFP release.

Hey Highlights:

  • Gold price struggles amid US Dollar demand, staying within a consistent trading range.
  • Technical analysis suggests potential for an upward trend, supported by RSI indicators.
  • Key resistance at $2,050; further advances may target $2,100 and then $2,144.
  • Immediate support at $2,009, critical test at the $2,000 threshold supported by the 21-day SMA.
  • Investors cautious ahead of the crucial Nonfarm Payrolls data.
  • US Dollar’s recent decline didn’t benefit gold due to rebounding US Treasury bond yields.
  • Market repositioning observed in US government bonds and Dollar before Fed interest rate decision.

Technical Analysis and Gold Price Struggles Outlook

Analyzing the daily chart, gold exhibited higher lows post Monday’s volatile trading, signaling potential for an upward trend. The 14-day Relative Strength Index (RSI) supported this bullish stance by trending higher above the midline.

Gold Price Struggles Technical Analysis 4 hours Daily Chart
Source: Trading Compass

Gold’s upward movement requires acceptance beyond the $2,050 region to target the $2,100 mark, followed by a push towards all-time highs at $2,144. Conversely, immediate support lies at $2,009, with a critical test at the $2,000 threshold backed by the 21-day Simple Moving Average (SMA).

Gold Price Struggles Technical Analysis 1 hour Daily Chart
Source: Trading Compass

Fundamental Overview

The gold commodity market sustained its range-bound movement on Friday, with investors adopting a cautious stance preceding the release of crucial Nonfarm Payrolls data. Traders refrained from substantial directional bets on the US Dollar, anticipating influential data later in the day.

Gold Price Struggles Impact of US Labor Market Data

Anticipation surrounding the US Nonfarm Payrolls impacted the markets, particularly the USD’s position. Despite the US Dollar’s recent decline, gold failed to capitalize due to the resurgence in US Treasury bond yields, diminishing the appeal of non-interest-bearing gold.

Market participants engaged in repositioning concerning US government bonds and the Dollar, aiming to secure profits before the upcoming Federal Reserve interest rate decision. The highly awaited US labor market data holds significance in deciphering the Fed’s interest rate outlook.

Read More: Oil Price: Low for WTI and Brent Amid OPEC+ Strong Doubts

Asian Trade Impact on Gold Prices

Gold prices remained relatively stable in Asian trade on Friday, sustaining levels above key thresholds. Market anticipation revolved around a potentially softer US nonfarm payrolls reading, just before the Federal Reserve meeting.

While gold surged to record highs earlier in the week, subsequent profit-taking and uncertainty regarding US monetary policy caused a swift reversal. However, gold maintained stability above the $2,000 mark, indicating positive prospects ahead.

Gold Price Struggles Focus on Nonfarm Payrolls Data

All eyes were on the upcoming nonfarm payrolls data, anticipated to reveal further labor market cooling after previous indicators signaled a decline in job openings and private payrolls.

A softer labor market could influence the Federal Reserve’s stance on interest rates, potentially favoring gold. Although the Fed is expected to maintain current rates, uncertainty looms regarding the timeline for rate adjustments.

Despite fluctuations in rate cut speculations, gold might experience strength in the coming months amid global economic uncertainties and potential rate adjustments.

Read More: Gold Prices Surge Past $2,000 Amid Economic Caution


Gold’s consolidation amidst US Dollar demand and anticipation for nonfarm payrolls indicates a cautious market sentiment. The impact of labor market data on Fed policies and gold’s future prospects remain pivotal factors shaping its trajectory.

This news article covers the current state of gold prices, providing insights into market dynamics and predictions, focusing on the imminent release of US nonfarm payrolls and its potential implications on gold’s performance.


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