Gold holds steady above 4140 as safe-haven appeal battles a resilient dollar and equity market volatility, with traders eyeing tonight's US payrolls report for a catalyst.
OCBC's Christopher Wong is cautiously optimistic after gold hit a two-week high above 4140, citing softer US Treasury yields and gold's resilience during the equity selloff as signs of renewed safe-haven demand. Gains are capped by rebounding oil prices and a steadier USD, with consolidation likely ahead of tonight's US payrolls report. Support sits at 4065/75 and resistance at 4146 and 4190/97.
Resistance is at 4146 (the overnight high) and then 4190/97, while support lies at 4065/75, 3960/80 and 3870 (the October low).
Softer US payrolls data tonight could weigh on yields and the dollar and extend gold's recovery, while a broad market deleveraging amid the AI and semiconductor stock selloff could trigger liquidity-driven selling of gold.
The article notes USD stabilisation limited gold's upside, but softer employment data in tonight's payrolls report could further temper Fed tightening expectations and weigh on the dollar. Softer Treasury yields also point to easing rate support for the currency, though the outcome hinges on the upcoming data.
Softer employment data could temper Fed tightening expectations and weigh on the dollar, per the analysis, while stronger data would work in the opposite direction.
Gold prices are consolidating near two-week highs as investors weigh safe-haven demand against a stabilizing US dollar and rebounding oil prices. OCBC analyst Christopher Wong maintains a cautiously optimistic outlook, noting that while softer Treasury yields support the metal, broader equity market deleveraging poses a liquidity risk. Market participants are now focused on tonight's US payrolls report and next week's CPI data for further direction.
Resistance is at 4146 (the overnight high) and then 4190/97, while support lies at 4065/75, 3960/80 and 3870 (the October low).
Softer employment data could temper Fed tightening expectations, weighing on the dollar and yields, which would likely extend gold's recovery.