Gold Steady at $2,673 as Markets Brace for U.S. NFP Report Impact

Gold prices hovered near $2,673 on Friday, heading for their best weekly performance since mid-November.

Investors are closely monitoring U.S. economic data, including the upcoming Nonfarm Payrolls (NFP) report, for clues about the Federal Reserve’s monetary stance. According to a Reuters survey, December payrolls are expected to rise by 160,000, a slowdown from November’s robust 227,000 increase.

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Market sentiment suggests that stronger-than-expected NFP data could exert downward pressure on gold as the Federal Reserve may delay rate cuts. However, Kansas City Fed President Jeff Schmid’s recent comments highlighted reluctance to ease rates further due to persistent inflation above the central bank’s 2% target.

“Gold prices could face short-term challenges if the NFP report surprises on the upside,” noted Jigar Trivedi, Senior Analyst at Reliance Securities. “Nevertheless, $2,650 remains a strong support level as geopolitical tensions and inflation fears persist.”

XAU/USD

Trump Policies and Safe-Haven Demand Drive Gold’s Momentum

Gold’s rally has been supported by safe-haven demand as markets assess the potential impact of President-elect Trump’s upcoming economic policies. Set to take office on January 20, Trump is expected to introduce tariffs and protectionist measures, which could stoke inflation and influence monetary policy decisions.

Historically, gold has been a reliable hedge against inflation, though higher interest rates diminish its appeal as a non-yielding asset. The Federal Reserve’s cautious approach toward rate adjustments further underscores the precious metal’s current allure for risk-averse investors.

Technical Analysis: Key Levels to Watch

Gold prices are consolidating near $2,673, testing the pivot point at $2,664.68. Immediate resistance lies at $2,683.22, with further targets at $2,700.15 and $2,720.31. On the downside, support is visible at $2,656.23, followed by deeper levels at $2,646.34 and $2,623.96.

GOLD Price Chart - Source: Tradingview
GOLD Price Chart – Source: Tradingview

The 50 EMA at $2,656.23 signals short-term bullish momentum, while the 200 EMA at $2,646.34 reinforces a broader upward trend. RSI readings remain neutral, suggesting potential for further gains if prices break above key resistance levels.

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ABOUT THE AUTHOR See More
Arslan Butt
Index & Commodity Analyst
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.
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