Gold Price Stalls Ahead of US Nonfarm Payrolls Data

The gold price has stalled at around $4,470 as it failed to break above the key psychological level of $4,500. The US Treasury yields have pulled back from their highs, but investors remain cautious ahead of the release of the US Nonfarm Payrolls data.

Analysts at OCBC noted that gold rose by over 2% towards an intra-session high of $4,510 as markets reassessed the odds for a September Federal Reserve hike. However, they warn that near-term direction is highly sensitive to Fed repricing and NFP data could be a key driver of yields and the US Dollar.

The daily chart shows that gold is trading below its 200-day Simple Moving Average (SMA), which is currently at $4,534. This level has been a strong resistance for gold bulls, while bearish attempts may find support between the August 14 low of $4,311 and the intra-week low of $4,282.