The strong upward momentum earlier this week noticeably slowed, and gold prices have been trending slightly lower over the previous 24 hours. The best 5-day performance for XAU/USD so far this week is its best 5-day performance since February, up over 3%. Russia invaded Ukraine at that time, which led to a rush toward gold. Recent gains in gold were probably the result of slightly waning Federal Reserve rate rise expectations.
This subsided on Thursday after a flurry of Fedspeak reaffirmed the institution's dedication to combating inflation. Ahead of Friday's much awaited US jobs report, investors were probably reluctant to commit to a directional bias. A decrease from the 308k non-farm payroll additions in August is expected to occur in September, to roughly 255k.
Those forecasts may easily lean by 50 basis points in the event of a softer outcome. The US Dollar and Treasury yields will likely suffer as a result, which would benefit gold. The tilt may, however, be surprising on the upside. Since June, the US's Citi Economic Surprise Index has been increasing. This suggests that the strength and vitality of the economy are underappreciated by economists.
Technical Analysis of Gold
Gold is challenging a significant declining trendline from March on the daily chart. The prevailing downturn might still be in effect if it holds. In such a case, attention would go back to the September low of 1614.92. If not, a positive breakout confirmation can allow gains to be extended. As a result, the 100-day Simple Moving Average is highlighted (SMA).
Weekly Intraday Signals on Gold H4 Chart as published by Vigor Forex Systems:
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