Gold bullion has not shown any concrete rebound signals this week, with the spot price still trading close to its 6-month low.
On the whole, volatility has slowed down and gold seems to be consolidating in the range of $1,810-1,830 an ounce; for the time being, a clear rebound signal is still missing.
Yesterday, the gold price wasn’t able to build on the modest gains achieved in the first part of the day. This provides confirmation of the high pressure that the precious metals markets are experiencing in the current environment, with rising yields and a stronger dollar.
From a technical perspective, gold still appears in a bearish scenario, with the first support zone placed just a few dollars below current levels. A first positive signal will arrive with the recovery of the resistance level of $1,850, while a return above $1,890-1,900 could be seen as a proper reversal signal.
Investors’ eyes are now looking to the macroeconomic data that will be released later today in the U.S., including the non-farm payrolls and the unemployment rates. Analysts have forecast that the US economy added another 160,000 jobs in September 2023 – down from 179,000 the previous month.
Any data above this figure could reinforce the idea that the Federal Reserve could have space for one more rate hike, while the figures below could support expectations for a more dovish Federal Reserve in 2024.
Carlo is an external market analyst for Kinesis Money. With a credential background in Economic Finance and International Exchange (MA), Carlo’s critical analysis of gold and silver markets’ performance is frequently quoted by leading publications such as Forbes, Reuters, CNBC, and Nasdaq.
This publication is for informational purposes only and is not intended to be a solicitation, offering or recommendation of any security, commodity, derivative, investment management service or advisory service and is not commodity trading advice. This publication does not intend to provide investment, tax or legal advice on either a general or specific basis.
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