Gold prices held steady on Thursday, reflecting a cautious mood among traders as they await key US nonfarm payroll data, which could impact both gold’s short-term direction and Federal Reserve policy decisions.
Amid ongoing geopolitical tensions in the Middle East, gold remains a sought-after safe-haven asset, while the market closely monitors economic indicators and potential interest rate cuts.
With silver, platinum, and palladium showing mixed performances, traders are preparing for heightened volatility, driven by the interplay of US labour data and global uncertainty.
Gold holds steady, awaiting payroll data
Gold (XAUUSD) prices held steady on Thursday, hovering around USD 2,657.13 per ounce in the spot market, while US gold futures dipped slightly by 0.1%, reaching USD 2,676.70.
This stability highlights a cautious sentiment as traders await the release of US nonfarm payroll data later in the day.
Gold consolidates around 2658, with potential for a breakout above 2663 or a pullback below 2638 as traders await key US data, as seen on the VT Markets app.
Looking at the chart, gold appears to be consolidating, with key resistance at 2663.41 and support at 2638.78.
The MACD indicator suggests early signs of bullish momentum, though the move remains uncertain.
With increasing tensions in the Middle East and the release of critical US economic data, traders should brace for potential market volatility.
A breakout above resistance or a fall below support could signal the next directional move for gold.
Federal Reserve’s upcoming decision
Attention remains on how the labour data could shape the Federal Reserve’s policy decisions, with CME’s FedWatch tool indicating a 69% chance of a 25-basis-point interest rate cut in November.
Bullion, typically benefiting in a low-interest-rate environment, may see increased activity depending on the Fed’s response to the data.
Recent US economic reports have been mixed, showing robust growth in services but weaker employment data, pointing to a possible cooling of the labour market.
Last week’s jobless claims slightly surpassed expectations, adding further clues regarding the direction of monetary policy. If the payroll report disappoints, the likelihood of deeper rate cuts could grow.
Silver, platinum, and palladium performance
Spot silver (XAGUSD) slipped 0.1% to USD 32.03 per ounce but remains up 1.2% for the week.
Platinum and palladium both posted slight gains, with platinum rising 0.4% to USD 994.30 and palladium up 0.5% to USD 1,005.25.
Despite these gains, both metals are on track for weekly declines, reflecting overall uncertainty in the commodities market.
Ongoing military action by Israel against Hezbollah in southern Lebanon has sustained gold’s appeal as a safe-haven asset, despite minimal movement in prices.
If the conflict escalates, gold demand could rise further as investors seek protection amid global uncertainty.
Foreign nationals in Lebanon have been scrambling to get out as Israel's campaign against the Iran-backed Hezbollah intensifies. Governments worldwide have been urging their citizens to leave and drawing up plans to get them out https://t.co/Kyrt3vWHpbpic.twitter.com/WIAlxr1Ch5
As traders look ahead, they are paying close attention to the US payroll data and comments from Federal Reserve officials later in the day. These updates could provide important clues about the Fed’s future decisions.
If the payroll report shows stronger-than-expected job growth, it may suggest that the economy is doing well, which could reduce the chances of a big interest rate cut and limit gold’s price increases.
On the other hand, if the report is weaker, it might spark more interest in gold as a safe investment, leading traders to adjust their expectations for potential rate cuts.
Additionally, traders are considering how inflation and global economic conditions could influence the Fed’s choices.
While gold prices remain stable for now, the upcoming data and comments will be crucial in determining the market’s next direction.
With ongoing geopolitical tensions and economic uncertainty, traders should stay alert and be prepared to react to any new information that could impact the gold market.
