A break below 2635 could prompt a steeper decline for XAUUSD
Technical Perspective:
Gold hovers between the 2635 - 2650 range and holds above the short-term ascending trend line. If the price closes below the 2635 support with a bearish breakout of the ascending channel, the price could extend its decline to the following support at 2610.00. Conversely, a break above 2650 could prompt a further rise toward the following resistance at 2665.
Fundamental Perspective:
Gold consolidated as investors weighed the political and economic outlook while awaiting key economic data. A stronger-than-expected US job openings report pointed to resilience in the labor market, with markets now focused on Friday's non-farm payrolls and upcoming speeches from Fed officials to gauge potential policy moves. The likelihood of a 25bps rate cut from the Federal Reserve, now at 73%, supports gold by lowering the opportunity cost of holding the asset. Additionally, geopolitical risks continue to bolster gold's safe-haven appeal.
Elsewhere, Asian markets were rattled after South Korean President Yoon's unexpected decision to impose martial law, only to swiftly reverse course hours later, causing stocks to tumble initially.
The Kospi Index dropped as much as 2%, with South Korean assets seeing widespread losses overnight, while equities in Sydney slipped and Tokyo markets opened flat.
Despite the turmoil, South Korea's central bank signaled readiness to intervene if necessary, soothing market concerns.
Author: Li Xing Gan, CMT, CFTe,
Financial Market Strategist Consultant to Exness
Gold hovers between the 2635 - 2650 range and holds above the short-term ascending trend line. If the price closes below the 2635 support with a bearish breakout of the ascending channel, the price could extend its decline to the following support at 2610.00. Conversely, a break above 2650 could prompt a further rise toward the following resistance at 2665.
Fundamental Perspective:
Gold consolidated as investors weighed the political and economic outlook while awaiting key economic data. A stronger-than-expected US job openings report pointed to resilience in the labor market, with markets now focused on Friday's non-farm payrolls and upcoming speeches from Fed officials to gauge potential policy moves. The likelihood of a 25bps rate cut from the Federal Reserve, now at 73%, supports gold by lowering the opportunity cost of holding the asset. Additionally, geopolitical risks continue to bolster gold's safe-haven appeal.
Elsewhere, Asian markets were rattled after South Korean President Yoon's unexpected decision to impose martial law, only to swiftly reverse course hours later, causing stocks to tumble initially.
The Kospi Index dropped as much as 2%, with South Korean assets seeing widespread losses overnight, while equities in Sydney slipped and Tokyo markets opened flat.
Despite the turmoil, South Korea's central bank signaled readiness to intervene if necessary, soothing market concerns.
Author: Li Xing Gan, CMT, CFTe,
Financial Market Strategist Consultant to Exness
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