Gold Daily | Spot Gold Hits Record High on Weak U.S. Jobs Data, Fed Rate Cut Speculation Grows

【Latest Gold Price and Recent Trends】

On Friday, spot gold surged due to weak U.S. non-farm employment data, briefly hitting a record high of $3,600 per ounce before closing at $3,584.62, up 1.10%. The potential for a Fed rate cut is driving investor caution.

【Technical Analysis】

Gold is positioned to potentially challenge the $3,650 per ounce level, the next key resistance. If this level is breached, the next resistance is seen at $3,700 per ounce. Currently, gold shows signs of being overbought and may face corrections if it drops below $3,570, targeting $3,540 or $3,500 per ounce.

【Market Sentiment and Economic Background】

Weak employment data has increased speculation of a Fed rate cut this month. August's non-farm employment increased by only 22,000, far below forecasts, raising concerns about the U.S. labor market. The weak data has also led to a decline in the dollar and U.S. Treasury yields, enhancing gold's appeal as a safe haven.

【Analyst Opinions】

Analysts are mixed on gold's trajectory. Some expect continued bullishness fueled by rate cut expectations and geopolitical tensions. Others caution about limited upside potential due to technical overbought conditions. The upcoming CPI data could be pivotal for gold's future movements, reinforcing rate cut expectations if inflation is lower than expected.