GOLD price volatility awaits US NFP data release. READ

5 May 2023

During the Asian session, the price of gold (XAU/USD) has been showing signs of volatility contraction around the $2,050.00 level. However, the precious metal has been struggling to make any significant moves as investors are eagerly awaiting the release of the United States Nonfarm Payrolls (NFP) data for further direction.

Recent reports have shown that weekly Initial Jobless Claims for the week ending April 28 have risen to 242K, compared to the consensus of 240K and the previous release of 229K. Despite this, the market is expected to gain more clarity after the release of the US Nonfarm Payrolls (NFP) data, which will give insight into the current state of the labor market.

According to consensus forecasts, the US labor market added 179K payrolls in April, lower than the former addition of 236K. However, the data that is likely to draw the attention of investors the most is the Average Hourly Earnings data. While the market is anticipating steady earnings numbers, a better-than-expected print could potentially reignite fears of a recovery in inflationary pressures.

From a technical standpoint, our analysis shows that the price of gold may experience a retracement, with the deepest level of pullback potentially occurring at the 50% and 61.8% Fibonacci levels in confluence with a support area. This could present an opportunity to buy gold at a discount. However, it's worth noting that the metal's value may only pull back to the 38.2% Fibo level instead of going deeper to the area of our attention.

5 May 2023

Not

✅ Previous Winning Idea