Looking ahead to NFP, GOLD's technical structure remains stable

Updated

XAUUSD is still trying to operate above its $2,300 base price after Thursday's wild swings, with the market focusing particularly on non-farm payrolls data to be released on this trading day.

ADP jobs data exceeded expectations in April and March data was revised upward, suggesting the US labor market remains strong and stable.
The US ADP jobs report released on Wednesday showed that US ADP employment increased by 192,000 in April, above expectations of 180,000. The value before March was revised up from 184,000 to 208,000.
The U.S. Department of Labor reported Thursday that 208,000 people filed for unemployment benefits in the week ended April 27, compared with expectations of 212,000 and a previous figure of 207,000.
The gold market's focus has shifted to Friday's nonfarm payrolls data, which will provide the latest data for the market to further assess the state of the US labor market and the outlook for employment. monetary policy of the Federal Reserve.

Surveys show the U.S. nonfarm working population is expected to increase by 243,000 in April after seasonal adjustments, compared with a gain of 303,000 in March.
The US unemployment rate is expected to remain unchanged at 3.8% in April.
Investors will also be watching data on wages and workforce participation. The survey found that average hourly wages in the United States in April are expected to increase 0.3% monthly and 4.0% annually. The US labor force participation rate in April is expected to be unchanged at 62.7%.

If Nonfarm Payrolls data is weaker than expected, or just as weak, this should be seen as a positive for gold prices as it will resonate with the Fed's less hawkish stance during the meeting. The recent FOMC made the US Dollar less attractive and boosted precious metals.

On the gold price technical chart, after gold reached the technical level of 2,322 USD, it was under pressure to fall again but the temporary decline is also limited by the 0.236% Fibonacci retracement point.
In terms of technical structure, not much has changed compared to yesterday's issue, so readers can check back here.

Fed keeps interest rates, GOLD increases but limited

Notable prices are also listed as follows.
Support: 2,284USD
Resistance: 2,322 – 2,340 – 2,345USD

🪙SELL XAUUSD | 2321 - 2319

⚰️SL: 2325

⬆️TP1: 2314
⬆️TP2: 2309

🪙BUY XAUUSD | 2259 - 2261

⚰️SL: 2255

⬆️TP1: 2266
⬆️TP2: 2271

Trade closed: target reached

Plan SELL Close Full Hit TP2 + 120pips 🗡

Note

The dollar declined clearly during Friday's trading, coinciding with the release of US employment data, which reinforced expectations of a US interest rate cut soon.

Note

Note

The Fed has been actively combating high inflation for more than two years, with a series of interest rate increases starting in March 2022, totaling more than five percentage points. This aggressive action has been unprecedented in four decades. Although inflation has declined from its peak in mid-2022, it remains above the Fed's 2% target, which has been a key part of the Fed's policy approach since 2012.

Note

All current conditions are favorable for people to spend again: the unemployment rate is at a record low, wages are rising sharply and inflation is being controlled at nearly 2%. Business surveys are starting to show a glimmer of hope with the belief that it will only be a matter of time before buyers return to spending more.

Note

Gold rebounded to above $2,327 early in the US session

Gold rose more than 1% to above $2,327 early in the US session on a day without any notable economic data except statements from Fed officials.

Note

Global gold prices fell slightly during these moments of trading, today, Tuesday, as this coincides with an increase in bets that the US Central Bank will reduce interest rates later this year and an increase in demand for bullion as a safe haven in light of the ambiguity of the ceasefire in Gaza.

Note

Gold investors are waiting for new directional information. US weekly initial jobless claims numbers will be released on Thursday. In addition, San Francisco Fed President Mary Daly will also give a speech on the day. Dovish comments from Fed officials could limit gold price declines for the time being.

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