The Gold price (XAU/USD) climbed nearly 1% on Monday, reaching the $2,320s. This increase comes as investors assess the impact of weaker-than-expected US jobs data on future interest rates.
- US Jobs Data Fuels Rate Cut Hopes: Disappointing US Nonfarm Payrolls data, showing lower-than-anticipated job growth and wage inflation, suggests a potential shift in the Fed’s monetary policy. Expectations of lower interest rates make Gold more attractive due to its reduced opportunity cost.
- China’s Positive PMI Data Supports Demand: The Caixin Services PMI data for China indicated continued expansion in the service sector, potentially boosting Gold demand in the world’s largest Gold consumer nation.
Technical Analysis: Gold Price in a Holding Pattern
- The 4-hour chart shows Gold (XAU/USD) trading sideways within a newly formed range.
- Resistance lies at $2,326, where the 50-day SMA is located.
- A breakout above the range could lead to a test of $2,353, followed by a potential move towards $2,370.
- Conversely, a break below the range could see Gold fall back to $2,280.