Gold price forecast have recently dipped slightly, hovering around $2,355 during Tuesday’s Asian trading session. This pause follows a notable rebound the previous day. Investors are keenly awaiting US employment data this week, starting with the JOLTS Job Openings report later today, which could influence gold prices significantly.
Gold Price and US Employment Data: A Key Influence
On Monday, gold price forecast managed to hold steady at a crucial support level before rebounding strongly. This surge was driven by a drop in the US Dollar and Treasury bond yields after disappointing data from the Institute for Supply Management (ISM). The ISM Manufacturing PMI fell from 49.2 in April to 48.7 in May, missing the expected 49.6. Additionally, the ISM Manufacturing Prices Paid eased to 57.0 from 60.9, against a forecast of 60.0. This weak data revived speculation about a potential interest rate cut by the Federal Reserve in September.
Current Trading Conditions for Gold
As of Tuesday, gold is struggling to maintain its upward momentum. The US Dollar is showing signs of a rebound, and Treasury bond yields are also bouncing back. The market is cautiously awaiting key employment data, including the JOLTS Job Openings report, which is expected to show a slight decrease to 8.34 million in April from the previous 8.488 million. The broader market sentiment and upcoming data, including the ADP employment report on Wednesday and the Nonfarm Payrolls data on Friday, will be crucial in shaping gold prices.
Technical Analysis of Gold Prices
On the daily chart, gold prices are confined within a range set by the 21-day Simple Moving Average (SMA) at $2,357 and the 50-day SMA at $2,334. The 14-day Relative Strength Index (RSI) has climbed above the midpoint but is struggling to maintain its position. A drop below the 50-day SMA at $2,334 could lead to a test of the $2,300 level. Further declines might push prices towards the May 3 low of $2,277.
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