Gold Price Stalls Below $4,500 Ahead of US Nonfarm Payrolls
The price of gold has stalled below $4,500 as investors await the release of US Nonfarm Payrolls (NFP) data. Gold (XAU/USD) is currently trading at $4,464, still trying to find acceptance above the previous support area around $4,470.
Analysts at OCBC note that gold rose over 2% towards $4,510 as Waller's comments prompted markets to pare September Federal Reserve (Fed) hike expectations, pulling US Treasury yields and the USD lower. However, they warn that near-term direction is likely to stay highly sensitive to Fed repricing.
Technical analysis shows that gold is nearing key resistance at the 200-day SMA, which stands at $4,534. A confirmation above this level would suggest that the correction from $4,690 highs in late August has completed.