XAU/USD HEADING TO 2050
XAU/USD Current price $2023 Gold still faces bearish pressure despite lower Treasury yields ,Market participants await more US labour market data. Gold spot is moving sideways without a clear direction in the short term, as the upside faces resistance at $2,040 and lower Treasury yields limit the downside. The negative momentum from the retreats from all-time highs near $2,130 still shows signs of life.On the fundamental front, the sideways moves reflect the market's conviction that the Federal Reserve (Fed) won't raise interest, and they foresee rate cuts in 2024, but after other central banks start loosening monetary policy. This could be negative for the US Dollar, but the fundamentals remains one of the strongest among G10 currencies considering GDP growth and the outlook
For Gold to resume the upside, some modest weakness in the US Dollar appears to be needed. Additionally, yields should continue to stay away from any significant rebound. This context should bring Gold back near record highs at some point in time. Data from the US on Thursday came in mixed, with the highlight of Continuing Jobless Claims pulling back sharply after last week's surge. The focus now turns to Friday's Nonfarm Payroll, with an expected increase of 180,000. Next week, is the FOMC meeting, and before that, on Tuesday, the US Consumer Price Index is due.
