Gold Daily | Spot Gold Dips 0.1% Amid Investor Caution Ahead of U.S. Non-Farm Payroll Report

【Latest Gold Price and Recent Trends】

Gold prices experienced a slight decline, falling 0.1% to $2,648.02, amid investor caution ahead of U.S. non-farm payroll data. While fundamental aspects remain unchanged this week, gold continues to oscillate near key trend lines and a support level of 2600.

【Technical Analysis】

On the daily chart, gold prices are consolidating near major trend lines. Buyers aim to drive prices higher, while sellers need a break below trend lines and the 2600 support to gain control. On the 4-hour chart, prices are trading between 2660 and 2620, suggesting range trading until a breakout occurs. A rebound from the 2600 support is possible. The hourly chart indicates that current price movements are volatile, awaiting strong catalysts like the U.S. non-farm payroll report or next week's U.S. CPI data.

【Market Sentiment and Economic Background】

The Federal Reserve's dovish cycle supports a bullish outlook for gold, but short-term corrections may occur due to re-pricing of rate cut expectations. Despite strong U.S. economic data, markets anticipate three rate cuts by the end of 2025. Geopolitical risks and de-dollarization, along with central bank purchases, are favorable for gold. The next significant event is the U.S. non-farm payroll report. Recent geopolitical developments like the Israel-Gaza ceasefire may influence market sentiment, impacting the demand for safe-haven assets like gold.

【Analyst Opinions】

Ajay Kedia of Kedia Commodities remains optimistic about gold, expecting prices to test around $3,000 by March 2025. Macquarie Group sees room for further gold price increases, possibly reaching record highs, driven by concerns over U.S. fiscal sustainability and strong Chinese demand. Despite potential pressure from a stronger dollar and rising yields, unconventional factors such as central bank purchases may continue to support gold prices. Capital Economics also cites fiscal sustainability concerns and the ongoing increase in public debt as significant supports for gold.