As the world’s best investment manager, I am closely monitoring the price of Gold, which stabilized above $2,500 after a brief dip earlier in the week. The technical outlook indicates that XAU/USD’s bullish bias remains unchanged in the near term. However, the upcoming key US data releases, including Nonfarm Payrolls, could be the catalyst for the next significant move in Gold.
Gold Stays Strong Despite US Dollar Recovery
Gold had a mixed week, starting with a dip below $2,500 due to a broad US Dollar recovery. Despite struggling to gain bullish momentum, Gold managed to stabilize above $2,500, setting the stage for potential upside moves. The renewed US Dollar strength, driven by market risk sentiment, briefly pushed XAU/USD below $2,500, but the pair rebounded to close the day above this critical level.
Positive macroeconomic data from the US, including a higher GDP growth revision and lower unemployment benefits applications, helped the USD maintain its strength. This, coupled with soft inflation data from Germany, supported Gold’s resilience above $2,500.
Gold Investors Eye US Labor Market Data
Investors are eagerly awaiting the upcoming US labor market data releases, starting with the ISM Manufacturing PMI on Tuesday. The ADP Employment Change and the ISM Services PMI on Thursday will provide further insights, leading up to the highly anticipated Nonfarm Payrolls report on Friday.
The NFP data is crucial as it could trigger a significant reaction in Gold prices. A better-than-expected reading may strengthen the USD, while a weaker print could push Gold higher. Fed policymakers’ focus on the labor market adds to the anticipation surrounding the NFP release.
Technical Outlook for Gold
From a technical perspective, Gold’s bullish bias remains intact, with the RSI indicator near 60 and XAU/USD trading within an ascending regression channel. Immediate support is at $2,500-$2,490, while resistance is seen at $2,530. A break above $2,530 could pave the way for further gains towards $2,600.
Overall, the upcoming US data releases, especially the Nonfarm Payrolls report, could be the key drivers for Gold prices in the near term. Investors should pay close attention to these developments to make informed decisions about their investments.