Gold Daily | Spot Gold Attempts Recovery Amid Robust U.S. Labor Market and Fed Rate Speculation

【Latest Gold Price and Recent Trends】

Spot gold is currently trading around $3252 per ounce, attempting to regain upward momentum after a sharp drop to $3200. The U.S. labor market's resilience and economic dynamics are key influences.

【Technical Analysis】

Gold has rebounded from a recent low of $3202 and is trying to maintain above the 21-day SMA at $3234. The RSI is slightly above the midline, suggesting potential for a price recovery. A break above $3260 could see a rise towards resistance at $3405, while a breach below $3234 may open the door to $3150.

【Market Sentiment and Economic Background】

The U.S. labor market remains robust despite economic headwinds, with non-farm payrolls exceeding expectations at 177,000 jobs added in April. However, trade tensions have eased, with signs of progress in U.S. negotiations with China, India, Korea, and Japan. This has reduced demand for safe-haven assets, such as gold, amidst a backdrop of a strong dollar and rising U.S. bond yields. The potential for the Federal Reserve to cut interest rates in response to any labor market weakening could impact gold prices.

【Analyst Opinions】

Analysts suggest that if U.S. employment data disappoints, it could strengthen expectations of Fed rate cuts, weakening the dollar and supporting gold prices. However, stronger-than-expected employment figures would likely bolster the dollar, leading to further gold price corrections. The market is focused on upcoming U.S. economic data, including the non-farm payroll report, for further direction.