Gold trading in positive territory in Friday’s Asian session.
The gold price (XAUUSD) regained some lost ground on Friday. The uncertainty surrounding the US presidential election, as well as ongoing geopolitical concerns in the Middle East, lend support to precious metals, a classic safe-haven asset.
United States will release its October Nonfarm Payrolls report.
The rising US treasury bond yields and a stronger US dollar (USD) may impact on gold prices. Traders will eagerly examine the US October employment report on Friday for fresh momentum, including the Nonfarm Payrolls (NFP) and unemployment Rate and average hourly earnings. The higher outcome may trigger bets on less aggressive policy easing by the Federal Reserve (Fed), putting some selling pressure on the non-yielding yellow metal.
Daily Market Movers: Gold prices recover ahead of highly anticipated US NFP report.
“Gold should maintain its upward bias and may even flirt with $2,800 in the coming days, as long as US election risks continue to weigh on market sentiment, and Fed rate cut expectations remain unchanged,” said Han Tan, chief market analyst at Exinity Group.
The US Personal Consumption Expenditures (PCE) Price Index climbed 2.1% year on year in September, compared to 2.2% in August. This amount was in line with market forecasts. Monthly, the PCE climbed by 0.2%, as projected. The core PCE Price Index, which excludes volatile food and energy costs, rose 2.7% during the same month, matching August’s increase and exceeding market expectations of 2.6%. The core PCE Price Index gained 0.3% on a monthly basis, as expected.
US initial jobless claims for the week ending October 26 decreased from 228K to 216K.
US initial jobless claims for the week ending October 26 decreased from 228K to 216K, falling short of the prediction of 230K.
Markets are presently pricing in nearly 100% odds of a 25 basis point (bps) rate drop by the Fed at the November meeting.
Technical analysis: Gold price remains solid in the long term.
The gold price rises on the day. The precious metal maintains a strong positive trend on the daily period because the price is well-supported above the Important 100-day Exponential Moving Average (EMA). Furthermore, the 14-day Relative Strength Index (RSI) is above the 50-midline at 62.30, implying that further upside is likely in the near future.
The all-time high and psychological barrier in the $2,790-$2,800 range appears to be a difficult nut to crack for Gold bulls. A convincing break over this level might spark a surge to $2,850.
On the downside, the initial support level for the yellow metal is $2,715, the October 24 low. Another negative filter to consider is $2,624, the September 30 low. The next level of contention is $2,600, which comes before $2,500, the September 9 low and round sum.
