Spot Gold Pulls Back as USD Rebounds – Focus on US Jobs Data and Fed Powell's Speech
The precious yellow metal gave back some of its gains, turning mixed with a minor negative bias as the US Dollar Index (DXY) reclaimed the 106.00 handle.
A pivotal week lies ahead, with attention focused on US labour market data, including the November jobs report (Non-Farm Payrolls), job openings, wage growth, and activity in the manufacturing and services sectors.
These reports are expected to influence the Federal Reserve's policy outlook significantly.
Projections indicate 202,000 jobs were added in November, recovering from October's weaker figures, while unemployment is forecast to rise slightly to 4.2%.
Additionally, markets will closely watch Federal Reserve Chair Jerome Powell's speech for clues about the Fed's monetary policy stance ahead of the December meeting.
While a rate cut is expected, further easing measures are anticipated in 2025.
Based on the technical signals, the Relative Strength Index (RSI) is positive but buckled, and the Moving Average Convergence Divergence (MACD) reflects a mixed stance.
Meanwhile, the Average Directional Index (ADX) indicates a ranging market.
Given these signals, further whipsaw movement is expected as the market attempts to firm up the bullish trend.
A close above $2,648-49 may trigger a rally toward $2,679-82. Reassess at that level.
Daily Chart Spot Gold
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