The XAU/USD pair showed a bullish outlook in Thursday’s session, rallying to $2,055 with a 0.78% gain. This positive momentum was supported by weakening USD due to lower-than-expected Jobless Claims data. However, indicators on the four-hour chart suggest potential market saturation and a possible consolidation phase.
Looking ahead, the market is awaiting key Nonfarm Payrolls figures from January, which could further impact the USD and the XAU/USD pair. Federal Reserve Chair Powell’s comments also influenced the market, with the US Dollar rallying as expectations for early rate cuts diminished. However, incoming data, particularly the labor market figures, will ultimately determine the timing of any easing cycle. If the data comes in weak, the XAU/USD pair could see further upside as lower interest rate expectations tend to benefit non-yielding assets.
On the technical side, the daily chart indicates a bullish momentum, with the RSI and MACD showing positive trends, and the asset positioned above key SMAs reinforcing buyer dominance. However, on the four-hour chart, the indicators suggest a potential slowing of momentum as the RSI approaches overbought territory, signaling a possible reversal as buyers may start taking profits.
Additional Insight:
It is worth noting that gold is often seen as a safe-haven asset during times of economic uncertainty or market volatility. With ongoing concerns about the global economy and geopolitical tensions, there may be continued demand for gold as a hedge against risk. Additionally, with central banks around the world maintaining accommodative monetary policies, the opportunity cost of holding gold remains low, further supporting its appeal to investors. As such, the technical and fundamental factors discussed in the article could continue to influence the XAU/USD pair in the near term.
