- The dollar confirms recent losses, ahead of key labor market data.
- Treasury yields set new weekly lows.
- Context gives support to gold, which remains in the $1800 area.
The Prayed It rose over $30 on Thursday and is flat on Friday, confirming that important advance, around $1800 ahead of the US jobs report. At the start of the day, XAU/USD reached as high as $1804, the high since August 10 and then pulled back finding support at $1795.
In the last three days, XAU/USD climbed over $60, returning for the first time since June on the average of 200 days. The rally will face a major challenge in the coming hours with the US jobs report.
The market consensus is for jobs to rise to 200,000 in November and the unemployment rate to remain at 3.7%. The data may have a broad impact on the market and on the Federal Reserve’s monetary policy expectations.
The dollar is having a weekly drop off, the biggest of which came after a briefing by Fed Chairman Jerome Powell. The head of the Fed gave signs that a new rise in interest rates is coming, although at a lower rate. The pullback that started on Wednesday extended through Thursday and Friday, before key data was consolidating.
Levels to consider
Upward, Gold faces the next resistance in the area of $1805, which if overcome would gain momentum. The next resistance is seen at the $1820 area. In the opposite direction, $1795 looms as support, followed by $1785 and then $1765. Confirmation below $1,780 would remove much of the bullish momentum, while below $1,752 could shift the bias from bullish to neutral.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
