Image Source: Pixabay
Gold price rallied close to 1% on Monday, late in the North American session, bolstered by an improvement in risk appetite due to increased bets that the US Federal Reserve (Fed) might begin to ease policy sooner than foreseen. This follows last Friday’s Nonfarm Payrolls (NFP) report, which showed the economy continues to create jobs but at a slower pace.The XAU/USD trades at around $2,320 after bouncing off daily lows of $2,291. The latest employment report in the United States (US) increased the odds for a Fed rate cut of a quarter of a percentage point in September 2024.Market participants continue to digest the latest data from the US as April’s NFP report was softer than expected. If the next inflation report comes in weaker than expected, traders’ speculation that the US central bank might lower interest rates during the year will be confirmed.Recently, Fed officials have crossed the newswires. Richmond Fed President Thomas Barkin said that he has not seen evidence that inflation is on track and added that current policy is restrictive enough. Earlier, New York Fed President John Williams added that the jobs market is moderating and that the Fed is looking at the “totality” of data. He added that there would be rate cuts eventually.
Daily digest market movers: Gold price rises toward $2,320 as US yields fall
Technical analysis: Gold price rises steadily, stays above $2,320
Gold price is upwardly biased, but it remains shy of retesting the $2,400 mark. For that to happen, buyers must reclaim April’s 26 high, the latest cycle high at $2,352. Once cleared, the next stop would be the $2,400 threshold, followed by the April 19 high at $2,417 and the all-time high of $2,431.It should be said that momentum is on the side of bulls with the Relative Strength Index (RSI) standing above the 50 midline and aiming higher.Conversely, if bears drag XAU/USD prices below $2,300, that could pave the way for a pullback toward the April 23 daily low of $2,291. Subsequent losses are expected beneath the March 21 daily high, which turned into support at $2,223, followed by $2,200.More By This Author:GBP/USD Price Analysis: Bears In Charge As ‘Shooting Star’ Looms
AUD/USD Post Moderate Gains On Solid US Data, Weak Aussie PMI
Silver Price Analysis: XAG/USD’s Uptrend Remains Intact, As Bullish Harami Looms