Gold price analysis failed to hit a new all-time high this Friday. The latest Nonfarm Payrolls (NFP) report showed 143,000 new jobs, below the expected 170,000. However, market anticipation was much lower, with estimates as low as 105,000. This unexpected outcome caused a knee-jerk reaction, resulting in gold losing its weekly gains.
Key Market Movers Impacting Gold Price Analysis
China’s Gold Reserve Expansion
China’s central bank, the People’s Bank of China (PBOC), increased its gold reserves for the third consecutive month. Despite high prices, the bank purchased 0.16 million troy ounces in January, according to Bloomberg. This steady buying trend signals strong demand from China.
US Tariff Concerns
Uncertainty surrounding US trade policies continues to influence gold prices. Former President Donald Trump’s threat to impose new tariffs on the Eurozone and other regions has kept investors cautious. If trade tensions escalate, gold could strengthen as a safe-haven asset.
Market Update: Gold’s Role as a Safe Haven
Gold remains a sought-after asset amid geopolitical concerns. Bloomberg reports that Citigroup Inc. expects gold prices to reach $3,000 per ounce within three months. Additionally, Zimbabwe’s gold output increased to 3,134.34 kg in January, up from 2,375.32 kg a year earlier, according to Fidelity Gold Refinery. Smaller-scale miners contributed the most to this rise, while larger mining operations saw a decline.
Impact of Nonfarm Payrolls Data on Gold
The latest US Nonfarm Payrolls report recorded 143,000 new jobs, falling short of the projected 170,000. This lower-than-expected figure initially raised expectations for a Federal Reserve rate cut in 2025. However, the report wasn’t weak enough to confirm a rate cut, leading to selling pressure on gold price analysis.
Technical Analysis: Gold Faces Resistance and Support Levels
Key Support Levels
- First support (Pivot Point): $2,854
- S1 support: $2,835
- S2 support: $2,815
- Major support: $2,790 (October 31, 2024 high)
Key Resistance Levels
- R1 resistance: $2,874
- R2 resistance: $2,893
- Psychological barrier: $2,900
If gold gains momentum, breaking past $2,900 could push it toward new highs. However, any profit-taking may trigger a decline toward the support levels.
Conclusion
Gold prices faced selling pressure due to a stronger-than-expected NFP report. China’s continued gold purchases and trade concerns support its safe-haven appeal. If market uncertainty persists, gold could still see upward movement in the coming weeks. For further insights, visit Daily Gold Signal for live updates and analysis.
For daily gold market updates, check out the Daily Gold Update.
