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Gold Rangebound as Indecision Reigns Pre-NFP, Silver Eyes Support

Gold prices recovered late in the day yesterday before continuing to trickle higher today. Looking at the larger timeframes and the price is caught in a range ahead of US jobs data due tomorrow.

Investors appear to be taking a pause ahead of the US jobs report due tomorrow after what can be described as a turbulent week for the precious metal. Opening the week with a new record high before a sharp selloff to within touching distance of the psychological $2000/oz level.

Today however saw US 10Y Yields hit a three-month low while safe haven appeal continues to keep the precious metal supported. The bigger picture for metals appears a bit clearer but in the short-term a potential retracement cannot be ruled out ahead of the year end. A lot of this will be down to the Jobs report tomorrow and the Fed meeting next week as market participants ramp up rate cut bets.

It appears we have the perfect cocktail for metal prices to rise heading into 2024 as demand grows. The uncertainty around global geopolitics as well the growing importance of metals in tech production leaves the metals sector in prime position heading into 2024, irrespective of the outcome at next week’s FOMC meeting.

Looking ahead at tomorrow and we have a host of medium impact data with initial jobless claims likely to gain attention. Friday brings the NFP and Jobs report, which has become even more interesting given the drop in job openings and a softer ADP print. A sizeable miss on Friday and we could get further dollar weakness to end the week which in turn will likely boost Gold prices.

Source: DailyFX