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GOLD
Gold approaches record highs ahead of key US data: here's how it's likely to react
Key Takeaways (30s Read)
Gold is approaching all-time highs ahead of key US data, but short-term direction remains uncertain.
Gold is being supported by a dovish stance from the Fed, particularly after Chairman Powell downplayed inflation risks to focus on labor market weaknesses. This week’s key US Non-Farm Payroll (NFP) and Consumer Price Index (CPI) reports will heavily influence the short-term direction of gold. Strong data could lead to a selloff, while weak data might provide further support. Technically, gold is advancing after breaking the 4245 level, with the all-time high target at 4381. Should it reach this level, sellers may step in, looking for a pullback to the 3887 level. The 4-hour chart indicates buying support around 4256, maintaining bullish momentum. However, it may be prudent to wait for the NFP report for significant movement.
AI Analyst
AI Opinion
"The gold market maintains strong support from the Fed's dovish stance. However, with critical US economic data such as the Non-Farm Payroll and Consumer Price Index on the horizon, there remains uncertainty in the short-term price movements. Should strong data emerge, we might see temporary downward pressure; nonetheless, the long-term upward trend for gold is likely to continue due to the Fed’s policies. Investors must watch closely whether new highs will be established and carefully time their trades. Particularly, with expected volatility from tomorrow's NFP report, a cautious approach is advisable."
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