XAU direction prediction and trading strategy
Updated
(XAU/USD) fell ahead of the European open on Friday following the release of a better-than-expected US non-farm payrolls (NFP) report. This development reduces investor expectations that the Federal Reserve may cut interest rates soon.
US nonfarm payrolls increased month over month, exceeding market expectations. Furthermore, wage inflation accelerated to 0.2% from 0.1% the previous month.
These numbers offset the impact of the JOLT and ADP jobs reports released earlier this week, which raised questions about the possibility of the Fed returning to a tightening cycle for the 55th month. According to Fed Watch Tool of CME Group, the probability of reducing benchmark interest rates has decreased to less than % compared to the previous time. This has created new momentum for US bond yields, pushing the US dollar higher. In the short term, the University of Michigan Consumer Confidence Index is expected to show some improvement, which could provide another boost to the US dollar.
Furthermore, lingering uncertainty around China and escalating tensions in the Middle East provide further support for the safe-haven dollar.
In short, the gold market is currently navigating a complex environment driven by economic data, Fed interest rate expectations and geopolitical concerns. Investors are closely monitoring these factors to better understand future gold price trends.
US nonfarm payrolls increased month over month, exceeding market expectations. Furthermore, wage inflation accelerated to 0.2% from 0.1% the previous month.
These numbers offset the impact of the JOLT and ADP jobs reports released earlier this week, which raised questions about the possibility of the Fed returning to a tightening cycle for the 55th month. According to Fed Watch Tool of CME Group, the probability of reducing benchmark interest rates has decreased to less than % compared to the previous time. This has created new momentum for US bond yields, pushing the US dollar higher. In the short term, the University of Michigan Consumer Confidence Index is expected to show some improvement, which could provide another boost to the US dollar.
Furthermore, lingering uncertainty around China and escalating tensions in the Middle East provide further support for the safe-haven dollar.
In short, the gold market is currently navigating a complex environment driven by economic data, Fed interest rate expectations and geopolitical concerns. Investors are closely monitoring these factors to better understand future gold price trends.
Note
SELL XAU 2000TP1: 1990
TP2: 1980
SL: 2015
Note
running 40 pipsNote
running + 70 pipsNote
Hit TP1 + 100 PIPsNote
Hit TP2 + 200 PipsNote
Note
The USD news data is good but gold is still affected by many other factors: funds, the war continuedNote
👉 Free Signals Everyday: t.me/SantaTradeProInsightsFX
👉 Support 24/7 and More
👉 Join the group to profit every day.
👉 @bellatrader_2509
👉 Support 24/7 and More
👉 Join the group to profit every day.
👉 @bellatrader_2509
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.