Gold prices (XAU/USD) are on the rise, marking their fourth straight day of gains. The recent US jobs report showed 256,000 new jobs, close to the expected 260,000. This has raised concerns about inflation, with the Federal Reserve (Fed) now expected to delay interest rate cuts until October 2025.
What’s Driving Gold Prices?
Inflation and Fed Decisions
The Fed is cautious about cutting rates and is focused on economic data. As Donald Trump’s presidency begins soon, more economic uncertainty could push gold prices higher. Some experts think gold might even reach $3,000 by summer.
Global Trends and Market Updates
India recently corrected its gold import numbers for November, reducing them by $5 billion. This shows how uncertain global markets can be. At the same time, the Fed plans to keep interest rates steady unless inflation slows significantly.
Highlights from the US Jobs Report
The latest employment data offers key insights:
- New Jobs Added: 256,000 in December, up from 227,000 in November.
- Unemployment Rate: Dropped to 4.1% from 4.2%.
- Hourly Wages: Grew by 0.3% in December, slightly less than November’s 0.4%.
Later today, the Commodity Futures Trading Commission (CFTC) will release data about gold market positions. This report shows how investors feel about gold’s future.
Gold’s Price Trends
Will Gold Break Higher?
Gold prices are near the top of a key chart pattern. Positive news could push prices past $2,700. If not, prices might fall back to $2,614.
Key Price Levels
- Support Levels: Prices could find support at $2,653 and $2,633. The trendline at $2,614 is also important. If prices drop further, they could hit $2,531.
- Resistance Levels: On the upside, gold needs to break $2,682. If it does, the next target is $2,708.
Conclusion
Gold prices are rising due to inflation fears and global uncertainty. The Fed’s cautious stance adds to gold’s appeal as a safe asset. Traders should watch the latest market data for more insights. Stay updated at Daily Gold Signal and explore in-depth reports at Daily Gold Update.
