Gold price (XAU/USD) has traded sideways since Tuesday
Gold price (XAU/USD) has traded sideways since Tuesday as investors await the Nonfarm Payrolls (NFP) report, which will give a snapshot of the current status of the United States labor market. The precious metal failed to climb above the $1,830 ceiling on Wednesday despite soft ADP Employment Change and new Services PMI orders, as the Federal Reserve (Fed) is not expected to surrender its ‘higher-for-longer’ stance on interest rates.
The US Dollar (USD) has risen due to rising real rates amidst falling inflation, however, easing labor market conditions could dent its appeal. This week, Cleveland Fed Bank President Loretta Mester said that interest rates should rise again in November if the economy continues to remain the way it is. Evidence of weakening labor demand, however, could prove a spoiler leading to the Fed’s interest rates staying unchanged. Gold price remains inside the woods in a $1,820-1,830 range from late Tuesday as investors await the US NFP report. The precious metal struggles for a direction but the downside bias seems favored as the 50 and 200-day Exponential Moving Averages (EMAs) have delivered a bear cross. A seven-day losing spell has been recorded in the Gold price. Momentum oscillators trade in the oversold zone but more downside cannot be ruled out.