Gold slipped to the $3,200 area as optimism grew over possible US-China tariff talks, which boosted risk sentiment and pushed the US Dollar to a 3-week high. However, gold’s downside may be limited as traders grow cautious ahead of Friday’s US Nonfarm Payrolls (NFP) report.
Despite USD strength, growing expectations of Fed rate cuts—possibly four by year-end—are supportive for gold in the medium term. This follows weak US economic data:
GDP contracted for the first time since 2022
PCE inflation is easing
Jobless claims hit a 2-month high
ADP jobs report showed cooling private-sector hiring
ISM Manufacturing PMI remained in contraction
Key NFP Expectations (Friday):
+130K jobs (down from 228K prior)
Unemployment Rate: steady at 4.2%
Wage Growth: +0.3%
Conclusion for Gold Traders:
Short-term pressure on gold from stronger USD and trade optimism, but soft US data and rising rate cut bets may provide support. Watch NFP closely — a weak report could trigger a bullish move in gold.
Resistance Level 1: 3392
Resistance Level 2: 3457
Resistance Level 3: 3500
Support Level 1: 3218
Support Level 2: 3173
Support Level 3: 3130
This communication is for informational purposes only and should not be viewed as any form of recommendation as to a particular course of action or as investment advice. It is not intended as an offer or solicitation for the purchase or sale of any financial instrument or as an official confirmation of any transaction. Opinions, estimates and assumptions expressed herein are made as of the date of this communication and are subject to change without notice. This communication has been prepared based upon information, including market prices, data and other information, believed to be reliable; however, Trade Nation does not warrant its completeness or accuracy. All market prices and market data contained in or attached to this communication are indicative and subject to change without notice.
Despite USD strength, growing expectations of Fed rate cuts—possibly four by year-end—are supportive for gold in the medium term. This follows weak US economic data:
GDP contracted for the first time since 2022
PCE inflation is easing
Jobless claims hit a 2-month high
ADP jobs report showed cooling private-sector hiring
ISM Manufacturing PMI remained in contraction
Key NFP Expectations (Friday):
+130K jobs (down from 228K prior)
Unemployment Rate: steady at 4.2%
Wage Growth: +0.3%
Conclusion for Gold Traders:
Short-term pressure on gold from stronger USD and trade optimism, but soft US data and rising rate cut bets may provide support. Watch NFP closely — a weak report could trigger a bullish move in gold.
Resistance Level 1: 3392
Resistance Level 2: 3457
Resistance Level 3: 3500
Support Level 1: 3218
Support Level 2: 3173
Support Level 3: 3130
This communication is for informational purposes only and should not be viewed as any form of recommendation as to a particular course of action or as investment advice. It is not intended as an offer or solicitation for the purchase or sale of any financial instrument or as an official confirmation of any transaction. Opinions, estimates and assumptions expressed herein are made as of the date of this communication and are subject to change without notice. This communication has been prepared based upon information, including market prices, data and other information, believed to be reliable; however, Trade Nation does not warrant its completeness or accuracy. All market prices and market data contained in or attached to this communication are indicative and subject to change without notice.
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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.