Gold rises above $4,300 as traders brace for US Nonfarm Payrolls
Gold (XAU/USD) extends its recovery on Friday as technical buying accelerates, even as market sentiment remains cautious due to developments in the Middle East and uncertainty over the Federal Reserve’s (Fed) interest-rate outlook.
Gold has risen above $4,300 as traders anticipate the release of US Nonfarm Payrolls (NFP) data, which is scheduled for 12:30 GMT. The precious metal has seen a surge of over 6% since breaking above the $4,000-$4,200 range earlier this week, driven by optimism that the Strait of Hormuz could reopen following reports of an agreement between Iran and Oman.
This development has helped ease concerns over energy-driven inflation and put downward pressure on the US Dollar and US Treasury yields. The upcoming NFP report, which is expected to show an increase of 80,000 jobs in July, could influence the direction of Gold's price action. If the employment data exceeds expectations, it may continue to support the precious metal's bullish momentum; however, any underperformance could lead to a reversal in its gains.
Technical indicators suggest that Gold is currently holding above key support levels, with the Relative Strength Index approaching overbought territory and the Moving Average Convergence Divergence (MACD) histogram remaining positive.
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