Gold Hits Record High as Weak US Jobs Fuel Rate Cut Bets.
Gold surges to new record high following weak U.S. jobs report.
FUNDAMENTAL OVERVIEW:
Gold prices surged to a fresh record high on Friday after a weaker-than-expected U.S. jobs report bolstered expectations of a Federal Reserve rate cut later this month. The metal, along with the broader commodities complex, was also set for a third consecutive weekly gain as the dollar retreated.
Gold further drew support from safe-haven demand earlier in the week, fueled by concerns over rising sovereign debt in developed economies, ongoing legal challenges to sweeping U.S. import tariffs, and questions over the Fed’s independence.
Recent remarks from Fed officials signaled growing openness to policy easing amid clear signs of labor market weakness. The closely watched nonfarm payrolls report showed U.S. employment rose only 22,000 in August, well short of forecasts. Additional labor indicators—including jobless claims, job openings, and private-sector hiring—also came in softer than expected.
GOLD TECHNICAL ANALYSIS CHART:
Technical Overview:
Gold is trading within an Up channel.
Gold is moving above all the Moving Averages (SMA).
The Relative Strength Index (RSI) is in the Buying Zone, while the Stochastic oscillator suggests a Positive trend.
Immediate Resistance level: 3586.50
Immediate support level: 3523.65
HOW TO TRADE GOLD
After a sharp rally on the higher time frame, gold paused to consolidate within a key range. It has since broken resistance decisively, surging to a new record high. Following the breakout and strong rally, a minor pullback is likely before the uptrend resumes.