Gold price (XAU/USD) continues its upward trend for the fourth consecutive day, reaching a four-month high near $2,680 during Friday’s European session. Persistent geopolitical tensions, including the ongoing Russia-Ukraine war and Middle East conflicts, alongside global trade uncertainties, have driven safe-haven demand for gold.
Key Factors Driving Gold Prices
Impact of Geopolitical Events On Gold Price
Geopolitical issues remain a significant driver for gold price upward momentum. The prolonged Russia-Ukraine conflict and rising tensions in the Middle East have strengthened gold’s appeal as a safe asset.
Additionally, trade war concerns add to market uncertainties, further boosting gold demand. For detailed daily updates, visit the Daily Gold Signal.
Federal Reserve’s Rate Policy
The Federal Reserve’s cautious approach to rate cuts hasn’t curbed gold’s rally. While elevated US Treasury bond yields typically weigh on gold, this week’s positive momentum has persisted. The bullish US Dollar (USD) hasn’t hindered the metal’s rise either, signaling strong investor interest.
Market Focus Shifts to US Nonfarm Payrolls
Investors are now closely watching the US Nonfarm Payrolls (NFP) report. Market expectations suggest an addition of 160,000 jobs in December, with the unemployment rate likely steady at 4.2%. This data could provide fresh direction for gold prices in the coming days. Stay informed with the Daily Gold Update.
Technical Analysis of Gold Prices
Gold price recently broke through the $2,665 resistance level, signaling further gains. With positive daily chart oscillators, prices could soon test the $2,681-$2,683 range and aim for the $2,700 milestone. Dips towards $2,655 or $2,635 may attract buyers, with strong support at $2,615-$2,600.
Risk Factors for Gold’s Uptrend
If gold breaks below $2,600, supported by the 100-day EMA and an ascending trendline from November lows, the trend could shift bearish. However, current conditions suggest limited downside risk.
Conclusion
Gold prices remain resilient, supported by geopolitical tensions and cautious Federal Reserve policies. Traders await the US NFP report for clearer market cues. With potential gains towards $2,700, gold continues to be a focal point for investors seeking safety in uncertain times.
For further insights, explore Daily Gold Signal and the Daily Gold Update. These resources provide detailed updates and market analysis to keep you informed.
