Gold prices are currently flat-lining above a one-month low, with traders hesitant to make aggressive bets ahead of the US Nonfarm Payrolls (NFP) report. The NFP data is expected to show that the US economy added 110,000 jobs in July, down from 147,000 in June, with the unemployment rate potentially edging higher to 4.2% from 4.1%.
*Key Factors Influencing Gold Prices:*
- *US Dollar Strength*: A strong US dollar, bolstered by the Federal Reserve's hawkish stance, is putting pressure on gold prices. A break above the $3,314-$3,315 resistance level could trigger a short-covering rally.
- *NFP Report*: A stronger-than-expected NFP report could boost the US dollar, potentially weighing on gold prices. Conversely, a weaker report might lift gold prices.
- *Trade Tensions*: Fresh US tariffs and ongoing trade tensions are tempering investor appetite for riskier assets, supporting safe-haven demand for gold ¹ ².
*Possible Scenarios:*
- *Upside Potential*: If gold breaks above $3,314-$3,315, it could target $3,325-$3,326 and potentially reach $3,360-$3,365 or even $3,400.
- *Downside Risk*: A convincing break below the 100-day Simple Moving Average (SMA) at $3,270 could drag gold prices to $3,248-$3,247 and potentially $3,200
*Current Market Sentiment:*
The market is pricing in less than a 50% chance of a Fed rate cut in September. Strong US jobs data could rule out bets for two Fed rate cuts this year, potentially boosting the US dollar at the expense of gold
Trade with your Own Risk ‼️‼️
*Key Factors Influencing Gold Prices:*
- *US Dollar Strength*: A strong US dollar, bolstered by the Federal Reserve's hawkish stance, is putting pressure on gold prices. A break above the $3,314-$3,315 resistance level could trigger a short-covering rally.
- *NFP Report*: A stronger-than-expected NFP report could boost the US dollar, potentially weighing on gold prices. Conversely, a weaker report might lift gold prices.
- *Trade Tensions*: Fresh US tariffs and ongoing trade tensions are tempering investor appetite for riskier assets, supporting safe-haven demand for gold ¹ ².
*Possible Scenarios:*
- *Upside Potential*: If gold breaks above $3,314-$3,315, it could target $3,325-$3,326 and potentially reach $3,360-$3,365 or even $3,400.
- *Downside Risk*: A convincing break below the 100-day Simple Moving Average (SMA) at $3,270 could drag gold prices to $3,248-$3,247 and potentially $3,200
*Current Market Sentiment:*
The market is pricing in less than a 50% chance of a Fed rate cut in September. Strong US jobs data could rule out bets for two Fed rate cuts this year, potentially boosting the US dollar at the expense of gold
Trade with your Own Risk ‼️‼️
Trade closed: target reached
NFP BUY TARGET HITTED
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💸 Crypto | Forex | Indices
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🧠 Learn While You Earn
t.me/uktradercom
📈 Follow the Smart Money
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.