Gold prices stepped back from their yearly highs. The dollar index has resumed its position, and investors are awaiting the U.S. nonfarm payrolls report today. These data will help determine the following course of the Fed’s monetary policy.
The U.S. labor market statistics have already been released earlier this week. The number of jobless claims was higher than expected, while the number of open vacancies was lower. Both of them demonstrate that the labor market is cooling. The nonfarm payrolls are the most important data today. They are likely to be worse than expected as well. Then we might talk about a reversal of the U.S. labor market.
In this case, the Fed would have one less reason to keep rates at higher levels. This would certainly be favorable for precious metals. Also, we will not let the banking crisis out of our sight, the events of which have come second. However, new problems in the banking sector might occur unexpectedly.
Fresh forecasts confirm bullish sentiments in the market as well.
Gold is confidently rising above $2,000 per ounce, higher than recent brief consolidation and last April’s levels. According to Société Générale analysts, a break through the key resistance zone of $2,055—2,075 will signal the beginning of a larger uptrend. In this case, the yellow metal prices might reach $2,150 and even $2,230.
According to the technical analysis, the uptrend in gold remains. The round price of $2,000 is an additional support. An upward exit from the triangle, that we discussed in the previous forecast, is still relevant. Long positions in gold might be opened amid positive fundamental factors.
The growth target will be the local high at the level of $2,033. Stop-loss will be set at breaking the uptrend and moving below the last bullish Marubozu candle. This level is equivalent to the price of $1,983.
Gold prices are rising:
Take profit – 2,033
Stop-loss – 1,983
This content is for informational purposes only and is not intended to be investing advice.
