XAU/USD: Current Price Holds at $2,044.10
The XAU/USD pair is trading relatively unchanged around the $2,040 level on Thursday, after paring back some of its early gains in the American session. The US Dollar faced mild pressure late on Wednesday, following mixed US data and the release of the FOMC Meeting Minutes. The Minutes from the Federal Reserve’s mid-December meeting showed that rate cuts were on the table, but provided no clear indication of when the Fed plans to proceed.
In terms of economic data, the US ADP survey on private job creation showed the addition of 164,000 new positions, surpassing market expectations of 115,000. This report suggests that the labor market is aligning with pre-pandemic hiring, indicating a more stable situation. Looking ahead, the market will be focused on the release of the monthly Nonfarm Payrolls (NFP) report on Friday, which is expected to show a gain of 170,000 new jobs in September.
From a technical standpoint, the daily chart for XAU/USD shows that the pair has found support around its 20 Simple Moving Average (SMA) for a second consecutive day, lacking clear directional strength. The 100 and 200 SMAs converge around the $1,950 level without clear slopes, while technical indicators remain within neutral levels. The Relative Strength Index (RSI) is flat, while Momentum is still heading lower, indicating limited bearish potential as long as the metal holds above the $2,030 support level.
In the near term, the 4-hour chart shows that the pair is in a neutral position, trading below a bearish 20 SMA but above a flat 100 SMA. Technical indicators are within negative levels but have turned marginally higher, suggesting that buyers may be outpacing sellers intraday.
Support levels: $2,031.00, $2,015.50, $1,998.65
Resistance levels: $2,040.20, $2,052.30, $2,065.45
Additional Insight:
The XAU/USD pair continues to be influenced by a variety of factors including economic data releases, Federal Reserve meetings, and technical indicators. The market’s focus will be on the upcoming NFP report, as a stronger than expected result could put pressure on gold prices, while a weaker result may have the opposite effect. Additionally, the technical outlook suggests that the pair is currently in a neutral position, with support and resistance levels guiding potential price movements. Traders will be monitoring these levels closely for potential entry and exit points.
