Gold price forecast (XAU/USD) is experiencing a sharp decline of nearly 1% on Friday, slipping below $3,100 and currently trading around $3,082. Despite an initial recovery from Thursday’s losses of over 2.50%, bullion still closed the previous session at a marginal decline of -0.65%, hovering near $3,115. As market participants reassess their positions, selling pressure continues to dominate the precious metal’s movement.
Daily Market Movers: Stagflation Concerns Looming
Investors are shifting their attention to the upcoming United States (US) economic data, specifically the Nonfarm Payrolls (NFP) report. Forecasts for the NFP range between 80,000 and 200,000, with the median consensus landing at 135,000. Federal Reserve (Fed) Chairman Jerome Powell is also set to address markets, potentially influencing expectations surrounding future interest rate cuts. Many investors anticipate that the Fed may lower interest rates up to four times by year-end, a sentiment that continues to shape market trends.
Gold Price Forecast & Technical Analysis: Key Levels to Watch
- Gold’s Performance: Gold has surged approximately 18% this year, benefiting from economic volatility and geopolitical tensions, as per Bloomberg.
- Interest Rate Expectations: The CME FedWatch Tool indicates a 33.2% probability of an interest rate cut in May, with June still being the most likely month for a policy adjustment.
- Stagflation Risks: Growing concerns about stagflation could further strengthen gold’s appeal as a safe-haven asset, according to Reuters.
- GDP Data: The Atlanta Fed GDPNow Index currently reflects a concerning -2.84%, fueling recessionary fears.
Gold Price Technical Analysis: Key Levels to Watch
Gold price forecast has slowed down due to profit-taking, but opportunities remain for another upward push. Moving forward, recession fears and stagflation concerns will likely drive the next phase of price movements.
Resistance Levels:
- $3,112 (Pivot Point): Reclaiming this level is crucial for a renewed bullish outlook.
- $3,167 (All-Time High): A potential target if bullish momentum resumes.
- $3,170 (R1 Resistance): A strong barrier limiting further gains.
Support Levels:
- $3,057 (S1 Support): A key level that previously triggered a bounce.
- $3,000: A psychological level that could come into play if bearish momentum intensifies.
- $2,998 (S2 Support): A critical downside level that may provide further support.
Conclusion: Gold’s Outlook Hinges on Economic Data
With increasing speculation regarding rate cuts and economic uncertainty, gold’s price action remains highly reactive to upcoming data releases. The Nonfarm Payrolls report, Fed statements, and overall market sentiment will play a crucial role in determining the next major move for bullion.
For more insights on gold price movements, visit Daily Gold Signal. Stay updated with the latest gold market trends by exploring our Daily Gold Update.
