Key points:
Gold (XAUUSD) prices remained largely unchanged on Thursday, trading at $2,657.13 per ounce in the spot market, while U.S. gold futures edged slightly lower by 0.1% to $2,676.70.
This steady movement reflects a cautious mood as traders anticipate the upcoming U.S. nonfarm payroll data, due later in the day.
Picture: Gold consolidates around 2658, with potential for a breakout above 2663 or a pullback below 2638 as traders await key U.S. Data, as seen on the VT Markets app.
Based on the chart above, we see that gold is currently in a phase of consolidation, with key levels to watch at 2663.41 for resistance and 2638.78 for support.
The MACD is showing early signs of bullish momentum, but the move remains tentative for now. With tensions in the Middle East rising and the upcoming U.S. non-farm payroll report, traders should be prepared for heightened volatility.
A breakout above resistance or breakdown below support will provide clearer direction for the next move in gold prices.
The focus remains firmly on how this labour data could influence the Federal Reserve’s next move, with a 69% probability of a 25-basis-point interest rate cut in November, according to CME’s FedWatch tool.
Bullion, known for performing well in a low-rate environment, could see more activity depending on how the Fed reacts to the data.
Recent U.S. economic indicators have been mixed, with strong growth in the services sector offset by weaker employment data, suggesting some cooling in the labour market.
You might also be interested in: Gold Steady as Middle East Tensions Rise, US Data in Focus
Initial jobless claims last week slightly exceeded expectations, providing further clues about the potential direction of monetary policy.
The Federal Reserve has maintained a cautious approach in recent months, and a weak payroll report could increase the likelihood of more aggressive rate cuts.
Spot silver (XAGUSD) edged 0.1% lower to $32.03 per ounce, though it remains up 1.2% for the week.
Platinum and palladium both saw slight gains, with platinum rising 0.4% to $994.30, and palladium increasing 0.5% to $1,005.25.
Despite these gains, both metals are on track for weekly declines, reflecting broader uncertainty in commodity markets.
Israel’s military expanded its offensive in southern Lebanon, targeting Hezbollah positions, which has kept gold’s safe-haven appeal intact despite the flat trading.
Should these tensions escalate further, gold could attract more demand as investors seek protection against global uncertainty.
Market participants are awaiting not only the U.S. payroll data but also speeches from Federal Reserve officials later in the day, which could provide additional insights into the Fed’s thinking.
A stronger-than-expected payroll number could reduce the chances of an aggressive rate cut, limiting upside potential for gold.
Conversely, weaker data could spur more interest in the metal as traders adjust their expectations for future monetary easing.
With gold holding steady for now, traders will be closely monitoring the next key data points to determine the market’s next direction.
Start trading now — click here to create your live VT Markets account.
Official partners:
