GOLD Analysis
Afternoon: Gold Declines Amid Rising US Treasury Yields and Market Focus on Jobs Data
Highlights:
- Gold fell under pressure as 10-year Treasury yields rose by 0.6%.
- Traders anticipate a 25 bps Fed rate cut, aligning with cautious Fed statements.
- Nonfarm payrolls data could be pivotal, with expectations set at 200,000 jobs.
Overview:
Gold prices fell as rising US Treasury yields put downward pressure on the non-yielding precious metal. Benchmark 10-year Treasury yields climbed by 0.6%, following a modest increase in weekly jobless claims, signaling a strong labor market. Traders are closely watching Friday's upcoming nonfarm payrolls report, expected to reveal a 200,000-job increase in November. A weaker-than-expected outcome could provide support for gold prices as it may heighten expectations of Federal Reserve policy easing.
Market sentiment reflects a growing belief that the Federal Reserve will cut interest rates by 25 basis points in December. Fed Chair Jerome Powell emphasized the resilience of the US economy while indicating a measured and cautious approach toward monetary policy changes.
On the technical front, gold prices find support at $2,615, with resistance at $2,655. For MCX gold, support lies at ₹76,100, with resistance at ₹76,800.
Action Recommendation:
- Sell on rallies near $2,642, targeting $2,622, with a stop-loss above $2,656.
Key Economic Data to Monitor
- Euro Zone: German Trade Balance and Revised GDP (Q/Q).
- US Zone: Non-Farm Employment Change, Average Hourly Earnings (M/M), and Unemployment Rate.
Support and Resistance Levels:
