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.
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