Spot gold fluctuates as the US Dollar retreats amid a cooling US job market
The price of gold stays volatile even as the U.S. Dollar Index (U.S. DXY) falls to 105.05, with traders responding positively to softer employment data for April and a slowdown in wage growth.
This report could lead the Federal Reserve to consider rate cuts earlier than expected, possibly diverging from earlier forecasts of a single cut in December and instead eyeing September or earlier.
With 175,000 jobs added in April, the lowest since October 2023, and a rise in the unemployment rate to 3.9% compared to 3.8% in March, market sentiment shifted. Additionally, wage growth slowed with a 0.2% increase from March.
Technical indicators show downward pressure in the Relative Strength Index (RSI), negativity in the Moving Average Convergence Divergence (MACD), and a ranging market in the Average Directional Index (ADX).
Bearish sentiment may intensify as spot gold experiences highly volatile price action. Additional assessment is required after the recent mixed price movement, as bearish sentiment persists, potentially leading to a downward trajectory targeting around $2,278 and further down to $2,254-58.
Any renewed upward movements are anticipated to face limitations.
Daily Chart Spot Gold
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