Gold Prices Near $2,520: Can Gold Break $2,540 Resistance Amid NFP Report?

Gold (XAU/USD) is trading at $2,519.03, up 0.09%, as it approaches the highly anticipated U.S. Non-Farm Payrolls (NFP) report. Investors are turning to gold as a safe haven, with the precious metal on track for a 1% weekly gain.

The jobs report, expected to show 164,000 new hires, could significantly impact gold’s trajectory. Any deviation from this figure may trigger market volatility, which could influence both gold prices and Federal Reserve interest rate decisions. In times of uncertainty, gold typically attracts risk-averse investors seeking stability.

Key Takeaways:

• Gold trades at $2,519.03, near key resistance at $2,540.41.
• Immediate support at $2,499.42 could be tested if the jobs data surprises.
• A break above the $2,527 pivot point could lead to bullish momentum.

Technical Analysis: Support, Resistance, and Key Indicators

Gold is testing critical technical levels, with immediate resistance at $2,540.41 and a pivot point at $2,527.08. A break above these levels could push prices toward $2,553.16.

GOLD Price Chart – Source: Tradingview

On the downside, immediate support is at $2,499.42, followed by deeper levels at $2,482.48 and $2,472.08.

The 50-day Exponential Moving Average (EMA) sits at $2,506.28, providing solid support. The Relative Strength Index (RSI) is currently at 59, indicating neutral-to-bullish momentum, with a push above 60 signaling further upside potential.

Impact of Jobs Data on Gold’s Future Movement

The NFP report’s outcome will be pivotal in determining gold’s next move. A weaker-than-expected jobs figure could lead to higher demand for gold, especially if the Federal Reserve signals a deeper interest rate cut. Conversely, a stronger-than-expected report may introduce selling pressure.

#NFP Data Outlook: 🔥📈🎯

– Forecast : 164k
– Previous : 114k

Scenarios:

1. Below 114k : Weak labor market, USD falls, Gold could hit $2550.
2. Between 114k & 164k : Slightly weak, Gold may rise to $2532.
3. Above 164k : Strong #USD, #Gold may drop to $2490

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— Adiva_ (@_Trade_Trends) September 6, 2024

Traders are closely watching the $2,527 pivot point—whether gold breaks above or falls below will likely dictate the next trend.