Gold Price Clings to Gains Amid US NFP Focus

Published 10-01-2025, 05:37 pm
© Reuters. Gold Price Clings to Gains Amid US NFP Focus

Gold prices continue to hold near a four-week high, supported by haven flows amid geopolitical risks and inflation concerns tied to US President-elect Donald Trump's policies. The Federal Reserve's hawkish stance has kept US Treasury yields elevated, which limits further upside for the yellow metal. While market participants are cautious, waiting for the US Nonfarm Payrolls (NFP) report, technical analysis suggests a bullish outlook for gold, with potential to target $2,700. However, dips toward $2,655 may offer buying opportunities, with $2,600 acting as a key support zone. Investors are focusing on the NFP data for further direction.

Key Highlights

# Gold price sees four consecutive days of gains amid haven demand.

# Elevated US bond yields and a strong USD cap gold's potential upside.

# US President-elect Trump's inflationary policies add to gold’s appeal.

# Technical setup favors bulls, with gold aiming for $2,700.

# Market awaits US Nonfarm Payrolls report for fresh direction.

Gold prices are riding a positive wave, maintaining their upward momentum ahead of the European session on Friday. The precious metal is attracting buyers, driven by haven flows spurred by geopolitical tensions and concerns over US inflation. These factors have supported gold for the fourth straight day, pushing it to a four-week high. However, the Federal Reserve's hawkish policy stance and high US bond yields are capping further price gains. The strong US dollar, bolstered by rising Treasury yields, is another factor preventing a more aggressive rally in gold prices.

From a technical standpoint, gold's breakout through the $2,665 resistance mark is seen as a fresh bullish signal. If the price continues to maintain this momentum, it is likely to test the $2,681-2,683 range, followed by the psychological $2,700 level. However, any pullbacks toward $2,655 may present buying opportunities, with additional support located around the $2,635 region. Below this level, $2,600 remains a crucial support zone, where the 100-day EMA and a short-term ascending trendline meet. A decisive break below $2,600 could shift the bias toward bearish sentiment.

As geopolitical events and Trump’s economic policies drive inflationary fears, the gold market remains highly sensitive to the upcoming US Nonfarm Payrolls (NFP) report. The NFP is expected to show an addition of 160K jobs in December, and a steady unemployment rate of 4.2%. This data will be crucial in shaping market expectations for future monetary policy and gold's price direction.

Finally

Gold remains bullish but faces resistance from the US dollar and bond yields. Key support levels should be monitored, with the NFP report offering potential market shifts.

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