Gold price (XAU/USD) recently hit a new high of $2,790 but has since pulled back. This drop is due in part to rising US Treasury bond yields, which impact interest rate expectations and make non-yielding assets like gold less attractive.
How US Jobs Data Impacts Gold Price and the Gold Market
New employment data shows the US job market might be stronger than expected. Strong ADP employment figures helped offset the weaker JOLTS Job Openings report earlier in the week. With a stronger job market, the Federal Reserve may delay interest rate cuts, which impacts gold prices. As of now, there’s a nearly 100% chance of a small rate cut (0.25%) in November and a 70% chance in December.
Rising Bond Yields and Their Impact on Gold Price in the Gold Market
US bond yields have also been rising because of political developments. The odds of Donald Trump winning the next election are increasing, and his economic plans could boost inflation. Trump’s policies of lower taxes, higher government spending, and tariffs could pressure the Federal Reserve to keep rates higher, which may also weigh on gold.
Tensions in the Middle East and Gold’s Safe-Haven Appeal
Global tensions, particularly in the Middle East, often make gold appealing as a safe investment. However, recent efforts toward a ceasefire in the region are reducing the need for this “safe-haven” buying. The US has sent a new envoy to negotiate between Israel, Hamas, and Hezbollah, with Israel reportedly open to talks after recent strategic wins. However, the chance of conflict escalation involving Iran remains a risk. Meanwhile, in Ukraine, North Korean troops joining forces with Russia adds to the global political uncertainty.
Gold and the US Dollar
Gold price also tend to move opposite to the US Dollar since it’s priced in USD. Despite the rise in bond yields, which usually strengthens the dollar, the US Dollar Index (DXY) has been slightly down, hovering around 104.00. This dip in the dollar supports gold prices, as a weaker dollar makes gold more affordable globally.
What’s Next for Gold? Technical Analysis
Gold’s breakout from its previous range between $2,708 and $2,758 to a high of $2,790 shows a strong upward trend. This trend is evident across short, medium, and long time frames, suggesting more potential gains.
XAU/USD Daily Chart Outlook
Gold’s next target is likely around the key $3,000 level. Initial support areas appear at $2,758 and $2,750, where it previously held. If prices break above $3,000, the next target may be $3,050, indicating room for further growth.
For the latest updates on gold prices, check our Daily Gold Update, and explore more on our Gold Signals page, where you’ll find timely data and expert market insights.
