DavidMarsh

Gold price has extended its recovery to near $2,030 as the US Dollar turns sideways. A pullback move in the Gold price is less convincing as traders have pared bets for a Fed rate cut in March.

Gold plunged on Tuesday, completely erasing last month's gains and inching ever closer to the 50-day simple moving average, a key support indicator located slightly above the $2,010 area. Bulls must defend this technical floor tooth and nail; failure to do so could trigger a move towards $1,990, followed by $1,975. On the flip side, if buyers return and spark a bullish reversal, resistance emerges at $2,045-$2,050. Taking out this ceiling decisively could be difficult, but a breakout could create the right conditions for a rally toward $2,085, the late December peak. On further strength, XAU/USD could be on its way to retesting its record.

Gold price has faced a sharp sell-off after failing to recapture the weekly high of $2,062. The precious metal has dropped to near $2,040 and is expected to remain on tenterhooks before getting fresh cues about the timing of rate cuts from the Fed. The yellow metal has surrendered entire gains generated on Monday and has corrected to near the 20-day Exponential Moving Average (EMA), which trades around $2,039.

Market conditions are aligning for the gold market as the precious metal benefits from safe-haven demand and growing expectations that the Federal Reserve will cut rates sooner than expected. The gold market is ending the week testing resistance at $2,050 an ounce and according to some analysts, the precious metal still has room to move higher as bullish momentum is just starting to pick up. February gold futures are looking to end the week at $2,047 an ounce, nearly unchanged from last Friday’s close. Although the yellow metal is unable to close the week with a gain, some analysts note that investors shouldn’t be too disappointed as prices are well off their four-week lows seen at the start of the week.Comment: Gold sell 10 pips runningComment: Gold sell 20 runningComment: Gold sell 30 pips runningComment: Follow my chartComment: XauusdComment: Gold buy confirm

Gold price (XAU/USD) catches some bids on Thursday and maintains its bid tone through the first half of the European session, albeit remains below the $2,040-$2,042 resistance zone.

Gold is finding it difficult to making a decisive move in either direction mid-week. After rising above $2,030 earlier in the day, XAU/USD lost its traction and retreated toward $2,020. Markets await the outcome of the 10-year US Treasury note auction.

Gold prices rallied strongly through late December, but have trended lower in early January, with traders reluctant to take on new bullish positions for fears of a larger bearish reversal should deep interest rate cuts projected for 2024 fail to materialize.

Following a quiet Asian session, Gold came under renewed selling pressure and declined below $2,030. The benchmark 10-year US Treasury bond yield holds above 4% after Friday's NFP-inspired rally and weighs on XAU/USD.

Gold remains rangebound as the US Jobs Report nears. An escalation of geopolitical risks will underpin gold’s haven status The monthly US Jobs Report hits the screens today at 13.30 UK with expectations of a further hiring slowdown in nonfarm payrolls. The survey, representing around 486k individual worksites provides detailed data on employment, hours, and earnings. Today’s survey is expected to show 150k new jobs added in December, while the unemployment rate is seen ticking 0.1% higher to 3.8%. The Federal Reserve actively monitors labor market conditions and today’s report will be closely watched as the US central bank mulls the timing of the first interest rate cut this year.

Gold prices (XAU/USD) retreated moderately on Tuesday, succumbing to rising rates and the commanding resurgence of the U.S. dollar, which climbed sharply following a poor performance last month, just as the curtain rose on the first trading session of 2024.