Spot gold holds above $2,000, ahead of the key event, the U.S. jobs data and next week’s Fed rate decision
There was little change in the precious yellow metal direction Thursday after displaying a blow-off top earlier in the week.
Meanwhile, its rival, the U.S. Dollar Index (U.S. DXY), tumbled to an intraday low of 103.58.
As Friday arrives, traders are now preparing for the main event, the Non-Farm Payrolls Report for November, which should offer greater clarity on the state of the U.S. labour market.
The forecasts highlight that 185,000 jobs are expected to be added, following the previous month's 150,000. — The unemployment rate is seen at 3.9%.
As much talk of a rate cut from the U.S. Federal Reserve early next year (March), a weaker report could generate more downside for the greenback.
In a separate report, the U.S. jobless claims rose slightly last week, according to Labor Department Data released Thursday.
Initial unemployment claims for the week ending Dec. 2 rose by 1,000 from the previous week to 220,000.
Next week, the U.S. Federal Reserve is widely expected to keep the federal funds rate steady at its two-day meeting on 12-13 December at 5.25-5.50%.
As traders wait for the posted bearish outside range day (negative) confirmation, fresh trades will likely be added ahead of the U.S. job data.
However, traders should still be wary of further weakness (stop-loss triggered) if we witness a move beneath $2,007-11, as this should support the negative signals (mentioned) to drive the market lower and open the path to a target of $1,968-69.
No view is seen on the upside.
Based on the technicals driving the market, the Relative Strength Index (RSI) indicator 3-day lookback is mixed.
The Moving Average Convergence Divergence (MACD) is weak. The ADX indicator holds a weak bull trend.
Daily Chart Spot Gold
This content is provided by Australian Financial Services Corporation (AFSC) Pty Ltd (AFSC), trading as Crystal Ball Finance. AFSC is a corporate authorised representative (CAR No. 001275455) of ShareX Pty Ltd (AFSL No. 519872).
For information relating to our financial services, you should refer to our Financial Services Guide.
Crystal Ball Finance content is designed as the opinion only and is general in nature. It does not take account of your objectives, financial situation or needs. Nothing in this content shall be construed as a solicitation to buy or sell any security or product or to engage in or refrain from engaging in any transaction. There are risks involved in any financial investment and trading strategy, and the value of any investment can and does fluctuate and may even become valueless. You should consider the appropriateness of any investment or trading strategy having regard to your circumstances. We recommend that you obtain financial, legal and taxation advice before making any financial investment decision or applying any trading strategy. This content is based on information obtained from sources believed to be reliable, but we do not make any representation or warranty that it is accurate, complete or up to date. We accept no obligation to correct or update the information or opinions in it. Opinions expressed are subject to change without notice. Crystal Ball Finance does not accept any liability whatsoever for any direct, indirect, consequential or other loss arising from any use or application of its content.