Gold Price Hits $2046 as ADP Jobs Data Miss, Fed Holds Rates Steady
Gold price (XAU/USD) has seen an uptick following the release of the United States Automatic Data Processing (ADP) report, which indicated a subdued hiring pace with only 107K jobs added in January, falling short of the market’s projection of 145K and the previous 158K figure. This soft labour demand has bolstered the appeal of gold.
FOMC’s Steady Stance on Rates
In a recent gathering, the Federal Open Market Committee (FOMC) and the Federal Reserve elected to maintain the status quo on interest rates, holding them steady within the 5.25%–5.50% range.
The absence of explicit indications of impending rate hikes in the FOMC’s policy statement, coupled with Federal Reserve Chair Jerome Powell’s remarks on inflation and growth priorities, has underscored this conservative approach.
Powell’s Perspective on Growth and Inflation
Powell’s communication post-meeting emphasized the persistent issue of high inflation, dismissing the likelihood of a rate cut in March. His comments during a CNBC interview highlighted that while the Federal Reserve is closely monitoring declining inflation, it does not seek to hinder the ongoing economic process that has not significantly affected unemployment figures.
This stance, focused on balancing employment and price stability without a mandate for growth, further cements the cautious but watchful monetary policy outlook.
In conclusion, a complex interplay of labour market signals and a cautious Federal Reserve underpin XAU/USD’s current strength, with market participants eyeing gold as a potential haven amid economic recalibrations.
Gold Price Outlook: Technical Analysis
Gold’s spot price has charted a definitive break from the symmetrical triangle pattern, surpassing the pivot point of $2,031.334 with robust momentum. The precious metal now trades at $2,046.135, with immediate resistance levels at $2,049.822 and $2,061.997 and a more distant ceiling at $2,065.
Support levels lie at $2,031.106 and $2,020.362, with significant backing at $2,002.162. The Relative Strength Index (RSI) stands at 59.37, which, while below the overbought threshold, indicates increasing buyer interest.
The 50-day Exponential Moving Average (EMA), currently at $2,031.334, aligns closely with the pivot point, reinforcing the bullish sentiment.
The Federal Reserve’s decision to maintain interest rates has sparked a heightened demand for gold as a safe-haven asset. The breakout above the triangle pattern at $2,031 suggests an open path for further gains.
In conclusion, with gold prices holding above the pivotal $2,038 and the 50 EMA, the trend leans bullish. The EMA supports the buying trend as investors turn to the yellow metal amid the unchanged rate environment.
Gold XAU Live Chart
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