Spot gold remained in consolidation mode around the $2,910 mark on Thursday, drawing buyers on an intraday dip to $2,891.27. Market sentiment continued to drive fluctuations, with ongoing demand for safe-haven assets supporting the precious metal.
Investor concerns were largely centered on U.S. trade policy developments. President Donald Trump’s administration introduced a 25% tariff on Canadian and Mexican imports on Tuesday, only to announce a one-month delay on levies targeting automakers the following day. On Thursday, Trump stated, “After speaking with President Claudia Sheinbaum of Mexico, I have agreed that Mexico will not be required to pay tariffs on anything that falls under the USMCA Agreement. This agreement is valid until April 2. I did this as an accommodation and out of respect for President Sheinbaum.”
Despite this temporary reprieve, broader trade tensions persist, fueling fears over U.S. economic growth. Analysts suggest that the administration’s tariff measures could hinder expansion while contributing to inflationary pressures, weighing on the U.S. dollar.
Mixed U.S. Employment Data Ahead of Key Jobs Report
Economic data released Thursday painted a mixed picture of the U.S. labor market. Weekly jobless claims declined in late February, while fourth-quarter unit labor costs slowed to 2.2%, down from 3% in the previous quarter. However, the Challenger Job Cuts report revealed that U.S.-based companies announced plans to eliminate 172,017 jobs in February—a staggering 103% increase from January and the highest February total since 2009.
Markets now turn their attention to the upcoming Nonfarm Payrolls (NFP) report, set for release on Friday. Economists anticipate that the U.S. added 160,000 jobs in February, with the unemployment rate expected to hold steady at 4%.
Technical Outlook: Gold Faces Resistance But Finds Buyers on Dips
From a technical perspective, XAU/USD has remained relatively unchanged for a second consecutive day. However, the pair has recorded a lower high and a lower low, suggesting a potential downside bias. Still, buyers have continued to step in on intraday declines below the 20-day Simple Moving Average (SMA), reinforcing underlying bullish sentiment.
In the short term, buyers are attempting to maintain control. Gold is currently trading above all key moving averages, with the 100-day SMA flat at $2,911.50. Meanwhile, the 20-day SMA continues to trend higher. Technical indicators are offering mixed signals, with the Momentum indicator pointing downward while the Relative Strength Index (RSI) trends higher. While bearish risks remain contained, any short-term dips are expected to attract further buying interest.
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