- Gold prices have turned positive for the third day in a row, with a variety of factors providing support.
- Geopolitical risks, trade war concerns, and falling US Treasury yields are supporting the XAU/USD pair.
- Traders are now hoping for some stimulus from Fed speakers ahead of Friday's US NFP report.
Gold prices (XAU/USD) regained positive traction after falling to around $2,655 intraday, but lacked follow-through and remained below four-week highs through early European trading on Thursday. It becomes. The U.S. dollar (USD) is holding steady near two-year highs, as hawkish signals from the Federal Reserve to slow the pace of interest rate cuts in 2025 continue to elicit support. This appears to be limiting the pace of interest rate cuts. -Yellow metal is obtained. That said, a variety of factors are providing tailwinds for the commodity, supporting the prospect of an extension of its nearly three-week uptrend.
Persistent geopolitical risks and concerns about President-elect Donald Trump's tariff plans continue to weigh on investor sentiment. This is evident in the cautious mood prevailing in the market, supporting the price of safe-haven gold. Meanwhile, a flight to safety could cause a modest decline in US Treasury yields, preventing USD bulls from making new bets and supporting the positive outlook for XAU/USD. Traders are now looking to speeches from influential FOMC members for some momentum ahead of Friday's important US Nonfarm Payrolls (NFP) report.
Gold prices continue to be supported by softer risk tone and lower US Treasury yields
- Automatic Data Processing (ADP) reported that U.S. private sector payrolls rose by 122,000 jobs in December, well below the 146,000 increase in November and below expectations of 140,000. Ta.
- A separate Labor Department report showed 201,000 new jobless claims for the week ending Jan. 4, the lowest level since February 2024 and a sign of stabilization in the labor market.
- December FOMC meeting minutes showed policymakers believe labor market conditions are gradually easing and favor slowing the pace of rate cuts as disinflation stalls. Ta.
- On Wednesday, the yield on the benchmark 10-year U.S. Treasury rose to its highest level since April 25, and the U.S. dollar firmed near a two-year high, hurting gold prices.
- CNN reported that US President-elect Donald Trump is considering declaring a national economic emergency to legally justify a series of universal tariffs on allies and adversaries.
- The Ukrainian military endured significant personnel losses in the face of relentless Russian aggression. The Russian Ministry of Defense announced that Russian troops defeated Ukrainian brigades in Seversk and Chasov Yar.
- Israeli airstrikes continued across the West Bank on Wednesday following Monday's attack that killed three Israelis. Israeli forces recovered the bodies of hostages in southern Gaza.
- Investors are now focused on speeches from a number of influential FOMC members for short-term stimulus later in the US session, but attention remains riveted on Friday's US non-farm payrolls number. Dew.
Gold price bulls maintain control; push buying should limit correctional declines
From a technical perspective, the overnight high near $2,670 currently appears to be acting as an impending hurdle that, if cleared, could provide another opening for bullish traders. Given that the oscillator on the daily chart is starting to move in positive territory, gold price may then rise to intermediate resistance near the $2,681-$2,683 zone on its way to the $2,700 mark.
On the contrary, any further decline is likely to find support near the $2,645 region, above the $2,635 region and the weekly low near the $2,615-$2,614 zone hit on Monday. Some follow-through selling below the $2,600 confluence consisting of the 100-day exponential moving average (EMA) and a short-term uptrend line extending from November's monthly low could provide another opening for bearish traders. Dew. Gold prices may then move further below the December swing low near $2,583 and test the next relevant support near $2,550.
USD price today
The table below shows the percentage change of the US dollar (USD) against major currencies today. The US dollar was the strongest against the British pound.
| USD | EUR | GBP | JPY | CAD | australian dollar | new zealand dollar | swiss franc | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.17% | 0.64% | -0.17% | 0.03% | 0.45% | 0.39% | 0.04% | |
| EUR | -0.17% | 0.47% | -0.31% | -0.14% | 0.30% | 0.22% | -0.12% | |
| GBP | -0.64% | -0.47% | -0.80% | -0.61% | -0.18% | -0.24% | -0.57% | |
| JPY | 0.17% | 0.31% | 0.80% | 0.18% | 0.61% | 0.50% | 0.21% | |
| CAD | -0.03% | 0.14% | 0.61% | -0.18% | 0.43% | 0.36% | 0.03% | |
| australian dollar | -0.45% | -0.30% | 0.18% | -0.61% | -0.43% | -0.08% | -0.39% | |
| new zealand dollar | -0.39% | -0.22% | 0.24% | -0.50% | -0.36% | 0.08% | -0.32% | |
| swiss franc | -0.04% | 0.12% | 0.57% | -0.21% | -0.03% | 0.39% | 0.32% |
The heat map shows the percentage change between major currencies. The base currency is selected from the left column and the quote currency is selected from the top row. For example, if you select USD from the left column and move along the horizontal line to Japanese Yen, the percentage change displayed in the box represents USD (base)/JPY (estimate).
