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Home Gold News Gold Prices Surge to $2,055 Amid Bullish Momentum, Eyes on Nonfarm Payrolls Data

Gold Prices Surge to $2,055 Amid Bullish Momentum, Eyes on Nonfarm Payrolls Data

by anna

In Thursday’s trading session, XAU/USD exhibited a robust rally, reaching $2,055, signaling a bullish stance on the daily chart and reflecting a notable resurgence by buyers. The bullish momentum is further evident on the four-hour chart, where indicators suggest a leveling near overbought conditions, hinting at potential market saturation.

While the technical analysis points to a strong buying interest, the fundamental landscape adds a layer of anticipation, with the market eagerly awaiting the release of crucial Nonfarm Payrolls figures for January, scheduled for Friday. The recent uptick in weekly Jobless Claims figures from the US had a dampening effect on the Greenback during the session, setting the stage for potential market shifts.

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Federal Reserve Chair Powell’s comments have contributed to market sentiment, expressing skepticism about the likelihood of the bank reaching a confidence level by March to initiate easing measures. This stance led to a rally in the US Dollar on Wednesday, as market expectations for imminent rate cuts began to wane. However, Powell emphasized that incoming data would play a decisive role in determining the timing of any easing cycle.

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As the market awaits the critical labor market figures set to be unveiled on Friday, a weaker-than-expected performance could propel gold prices even higher. Traditionally, non-yielding assets, such as gold, tend to benefit from lower interest rate expectations, creating a potential upside for the precious metal in the event of disappointing labor market data.

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