Gold prices have seen a resurgence in recent days, with a troy ounce of the precious metal currently priced at 2517 USD. This increase comes as the market eagerly anticipates the release of August’s US employment report, which could have a significant impact on the Federal Reserve’s interest rate policies.
Given the recent signals of a weakening employment market in the US, investors are speculating that the Federal Reserve may need to take more decisive action to stimulate the economy. Private employers in the US hired at the slowest pace in 3.5 years in August, and the number of job vacancies has declined. Additionally, manufacturing activity has also seen a decrease. These factors all point towards a challenging economic situation in the US, leading to expectations of a 50-basis points rate cut in September.
Looking at the technical analysis of XAUUSD, we see that the precious metal has received support at 2472.00 and is currently showing signs of a growth wave towards 2513.62. The market is consolidating around this level, with the potential for an upward breakout towards 2555.50. The MACD indicator confirms this bullish scenario with its signal line above zero and sloping upwards.
On the H1 chart of XAUUSD, a growth wave to 2513.62 has already been completed, and the range is now extended between 2523.20 and 2504.00. A downward breakout could lead to a decline to 2491.55, while an upward breakout could push the trend towards 2555.50. The Stochastic oscillator supports this upward scenario, with its signal line near 80 and preparing to decline to 20.
The current economic signals and technical analysis indicate a positive outlook for gold prices. Market expectations of a rate cut and the potential for further growth in gold prices point towards a continued upward trend. As investors closely monitor developments in the US economy and the Federal Reserve’s actions, gold prices may continue to see growth in the near future.
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