Gold struggles below $4,100 as US Nonfarm Payrolls takes centre stage
FXStreet · Vishal Chaturvedi ·
Gold (XAU/USD) struggles below $4,100 on Friday after climbing to a two-week high of $4,146 the previous day. A rebound in the US Dollar (USD) weighs on the metal, with attention turning to the US Nonfarm Payrolls (NFP) report due at 13:30 GMT.
Gold retreats as the US Dollar regains ground ahead of the US jobs report.Lower Oil prices support Gold's weekly recovery, although hawkish Fed expectations remain a hurdle.XAU/USD holds above the 50-period and 100-period SMAs on the 4-hour chart.Gold (XAU/USD) struggles below $4,100 on Friday after climbing to a two-week high of $4,146 the previous day. A rebound in the US Dollar (USD) weighs on the metal, with attention turning to the US Nonfarm Payrolls (NFP) report due at 13:30 GMT. At the time of writing, XAU/USD trades around $4,068, down 0.70% on the day, after reaching an intraday low of $4,035.The US economy is expected to have added 65K jobs in October, up from 29K in September, while the Unemployment Rate is forecast to hold steady at 4.2%. Stronger-than-expected figures would point to a stable labour market, giving the Federal Reserve (Fed) more room to keep fighting inflation.This could strengthen bets on a December interest rate hike, lifting the US Dollar and putting further pressure on Gold. Conversely, softer data could temper those expectations, weigh on the Greenback, and help bullion recover.The US Dollar Index (DXY), which tracks the Greenback against a basket of six major currencies, trades around 102.00, up 0.40% on the day.Meanwhile, the deepening AI-led sell-off in equities leaves Gold vulnerable to liquidity-driven selling as investors cut positions to raise cash, meet margin calls or cover losses elsewhere.Still, bullion remains set to break a three-week losing streak, supported by a sharp drop in Oil prices. West Texas Intermediate (WTI) is down around 12% so far this week as the Democratic sweep of Congress in the US midterm elections fuels expectations that lawmakers could curb President Donald Trump’s military campaign against Iran.However, a negotiated end to the US-Iran war still appears distant despite ongoing diplomatic efforts, while Oil prices have recovered some ground, limiting Gold’s upside. US President Donald Trump said the US may have to “destroy” the rest of Iran, adding that people will “know soon enough” whether he will act.Crude and its impact on inflation and interest rates have been key drivers for bullion since the war began in late February. Higher energy costs have added to pressure on central banks to tighten monetary policy, weighing on the non-yielding metal.Technical analysis: bulls struggle to clear 200-period SMAOn the 4-hour chart, XAU/USD holds above both the 50-period and 100-period Simple Moving Averages (SMAs), hinting at a constructive near-term tone even as it remains capped by the 200-period SMA.The Relative Strength Index (14) has eased from overbought territory to around 55, suggesting bullish momentum has cooled but remains mildly positive. Meanwhile, the Moving Average Convergence Divergence (MACD) hovers near the zero line, indicating limited directional momentum.On the topside, immediate resistance is seen at the 200-period SMA at $4,114, followed by the horizontal barrier near $4,200, where a sustained break would open the way for a stronger bullish continuation.On the downside, initial support is located at the 100-period SMA at $4,050, with the 50-period SMA at $4,004 underpinning the broader structure; a deeper pullback could revisit the year-to-date low around $3,870.23, where buyers would be expected to defend the prevailing uptrend.(The technical analysis of this story was written with the help of an AI tool. Know more.)
Gold FAQs
Why do people invest in Gold?
Read the full story at FXStreet · All coverage of this story