Gold prices have rebounded following the release of weaker-than-expected US Nonfarm Payrolls data. The softer-than-anticipated job growth has raised concerns about the strength of the US economy and increased expectations for further interest rate cuts by the Federal Reserve.
Key Factors:
- Weak US Job Data: The disappointing US Jobs report has reduced expectations for aggressive Fed rate hikes, which is positive for gold.
- Geopolitical Tensions: Ongoing geopolitical tensions, particularly in the Middle East, continue to support gold’s safe-haven appeal.
- Inflationary Pressures: Persistent inflationary pressures could also support gold prices, as it can erode the purchasing power of fiat currencies.
Technical Analysis:
- Upward Trend: Gold is in an overall uptrend, with potential for further gains.
- Resistance Levels: The $2,790 level is a key resistance level.
- Support Levels: The $2,708 level is a potential support level.
