Analysis Of The XAU/USD Pair: US Labor Market Data To Determine Future Dynamics Of Gold

By RoboForex Analytical Department

The yield on 30-year US government bonds has reached 4.85% - a new maximum since 2008. In addition to the high discount rate, this is also driven by China selling off its portfolio of US debt securities. As soon as they pause, the yield increase will slow down or stop altogether – significantly reducing demand for them. Moreover, the factor of rising inflation is still present and the budget crisis in the US is only deferred. Preliminary data on the US labor market will be published today – if they turn out to be worse than expected and the result is officially confirmed on Friday, it will be quite difficult for the Fed to raise the rate again before the end of the current year. All of this does not provide grounds to completely write off gold.

Technical Analysis Of The XAU/USD Currency Pair

On the D1 timeframe for the XAU/USD pair, the level remains at 1929.14, and support has not been formed for 7 days. Quotes have even fallen below the 1810 mark. Likely, by the end of this week, gold will "find the bottom".

On the H1 timeframe, speculative purchases can be considered as part of a temporary correction from 1827.74 with a target at 1857. Given the duration of the falling trend, sales following the trend are unlikely. Short positions may be considered after a rebound from 1855 after the correction.

Disclaimer

Any forecasts contained herein are based on the author's particular opinion. This analysis may not be treated as trading advice. RoboForex bears no responsibility for trading results based on trading recommendations and reviews contained herein.