Gold Daily | Spot Gold Hovers as U.S. Payroll Data Anticipated; Fed Rate Cut Speculations Rise

【Latest Gold Price and Recent Trends】

On Thursday, spot gold experienced slight fluctuations, hovering around $3,360 per ounce. Investors are eagerly awaiting the U.S. non-farm payrolls report, which could significantly influence the Federal Reserve's timeline for potential rate cuts. The recent ADP report showed a decline in private sector employment, supporting gold prices amid expectations of reduced interest rates.

【Technical Analysis】

Gold has been moving steadily upwards after rebounding from a major trend line. On the daily chart, resistance is noted near $3,438, with buyers likely to enter if prices rise above this level. On the four-hour chart, the recent break above a minor descending trend line has attracted buying interest, although momentum has weakened. Key support is near $3,322, with further downside targets at $3,297 and $3,248 if broken. In the one-hour chart, volatility is high as traders await the employment report, which could dictate immediate price direction.

【Market Sentiment and Economic Background】

The anticipation of the U.S. non-farm payrolls report has heightened market attention, with economists predicting an increase of 110,000 jobs in June, lower than May's 139,000. The unemployment rate is expected to rise slightly. A weaker-than-expected employment report could increase the probability of a Fed rate cut, leading to potential dollar weakness and gold price support. Conversely, strong data could strengthen the dollar, pressuring gold prices.

【Analyst Opinions】

Analysts suggest that disappointing non-farm payrolls could trigger a sell-off in the dollar and boost gold prices. Lower borrowing costs could favor gold, which benefits during periods of low interest rates and economic uncertainty. While the gold market has been supported by geopolitical tensions and strong central bank purchases, concerns over the U.S. deficit persist, potentially enhancing gold's safe-haven appeal.