⭐️ XAU/USD : NFP's effects on $GOLD (IMPORTANT ANALYSIS)

Upon reviewing gold in the weekly timeframe, we observe that the price is trading around $2298. If the NFP data is announced to be higher than the forecasted rate, it will strengthen the dollar index and consequently cause a significant drop in gold prices! Should this occur and gold stabilizes below $2300, we can expect a fall in gold prices to lower levels such as (in order) $2268, $2243, $2229, and $2222.

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Comment:

Upon examining gold in the 2-hour timeframe, we can see that yesterday, as expected, gold experienced a relative increase and managed to rise by 100 pips to $2310 before undergoing a price correction. Currently, gold is trading around $2295, and we will have the NFP data in a few minutes. If gold stabilizes below $2300, we can anticipate a further decline in gold prices.

Comment:

With the announcement of the NFP statistics, gold rose to $2320 but after reaching this level, it faced selling pressure again and is currently trading in the range of $2299. Do you think this fall will continue?

Comment:

• Gold prices have stabilized at $2,300 per ounce after a drop to a nearly 1-month low of $2,277.

• The price stabilization occurred as investors capitalized on higher gold valuations to book profits.

• This activity persisted despite the release of weaker-than-expected US labor data.

• The labor data led to speculation that the Federal Reserve might reduce interest rates this year, which could support non-yielding assets like gold.

• However, the potential for interest rate cuts prompted investors to seek riskier assets instead of gold.

• Over the week, gold’s value decreased by more than 1.5%.

• The decline is attributed to the growing hope for a ceasefire between Israel and Hamas, brokered by Egypt, which diminished gold’s status as a safe-haven asset.