Gold licks its wounds early Thursday, following Wednesday’s nearly 1% correction.
The US Dollar holds the recovery momentum amid geopolitical woes, mixed US data.
Technically, Gold remains a ‘buy-the-dips’ trade while the daily RSI stays bullish and the 21-day SMA holds.
Gold is nursing losses near $4,450 in Asian trading on Thursday, having suffered about a 1% correction from weekly highs of $4,500 on Wednesday. All eyes remain on the geopolitical developments and the incoming US jobless claims data for fresh trading directives.
Gold is on the defensive early Thursday, as markets assess the mixed US economic data published on Wednesday, while the US Dollar clings to recovery gains, exerting bearish pressures on the bright metal.
Data released by the Bureau of Labor Statistics showed on Wednesday, Job Openings, a measure of labor demand, dropped 303,000 to 7.146 million by the last day of November, against expectations of a 7.6M figure.The ADP report showed that private employment in the United States (US) increased by 41,000 jobs last month after a revised decrease of 29,000 in November. The market forecast was for a 47,000 growth.
Meanwhile, the Institute for Supply Management’s index of services rose 1.8 points to 54.4, the highest since October 2024, the group said Wednesday.
However, the downside in Gold remains cushioned as the bets for two US Federal Reserve interest rate cuts appear intact following the latest data flow.
Markets continue to predict 61 basis points of rate cuts this year, according to data compiled by LSEG.
Additionally, China’s central bank extended its gold-buying streak to a 14th straight month in December, according to official data, providing some comfort to Gold buyers.
The main factor that could keep the ‘buy-the-dips’ trades intact for Gold is geopolitics. The focus is once again on the Greenland issue, with White House separately having confirmed discussions about acquiring Greenland, including potential military involvement.
That being said, the next clear directional move in Gold hinges on Friday’s all-important US Nonfarm Payrolls report. The US labor data could offer fresh insights into the Fed’s easing trajectory for the year ahead, significantly impacting the Greenback and the non-yielding Gold.
Daily technical analysis
In the daily chart, the 21-day SMA climbs above the 50-, 100-, and 200-day SMAs, with all slopes rising as price holds above them. This bullish alignment reinforces buyers’ control. The RSI prints 59.87, above the 50 midline, suggesting firm momentum without overbought conditions. The 21-day SMA at $4,373.77 offers initial dynamic support.
Holding above the medium- and long-term averages keeps the trend bias positive. A dip could find support at the 50-day SMA at $4,221.80, while the 100-day SMA at $4,008.18 underpins the broader trend. The 200-day SMA at $3,659.96 remains a distant floor. A close below the 21-day SMA would shift the tone toward consolidation, while sustained trade above these rising averages would leave the path open for further extension.
Deeper correction or dip-buying likely in GOLD?
Gold is nursing losses near $4,450 in Asian trading on Thursday, having suffered about a 1% correction from weekly highs of $4,500 on Wednesday. All eyes remain on the geopolitical developments and the incoming US jobless claims data for fresh trading directives.
Gold is on the defensive early Thursday, as markets assess the mixed US economic data published on Wednesday, while the US Dollar clings to recovery gains, exerting bearish pressures on the bright metal.
Data released by the Bureau of Labor Statistics showed on Wednesday, Job Openings, a measure of labor demand, dropped 303,000 to 7.146 million by the last day of November, against expectations of a 7.6M figure.The ADP report showed that private employment in the United States (US) increased by 41,000 jobs last month after a revised decrease of 29,000 in November. The market forecast was for a 47,000 growth.
Meanwhile, the Institute for Supply Management’s index of services rose 1.8 points to 54.4, the highest since October 2024, the group said Wednesday.
However, the downside in Gold remains cushioned as the bets for two US Federal Reserve interest rate cuts appear intact following the latest data flow.
Markets continue to predict 61 basis points of rate cuts this year, according to data compiled by LSEG.
Additionally, China’s central bank extended its gold-buying streak to a 14th straight month in December, according to official data, providing some comfort to Gold buyers.
The main factor that could keep the ‘buy-the-dips’ trades intact for Gold is geopolitics. The focus is once again on the Greenland issue, with White House separately having confirmed discussions about acquiring Greenland, including potential military involvement.
That being said, the next clear directional move in Gold hinges on Friday’s all-important US Nonfarm Payrolls report. The US labor data could offer fresh insights into the Fed’s easing trajectory for the year ahead, significantly impacting the Greenback and the non-yielding Gold.
Daily technical analysis
In the daily chart, the 21-day SMA climbs above the 50-, 100-, and 200-day SMAs, with all slopes rising as price holds above them. This bullish alignment reinforces buyers’ control. The RSI prints 59.87, above the 50 midline, suggesting firm momentum without overbought conditions. The 21-day SMA at $4,373.77 offers initial dynamic support.
Holding above the medium- and long-term averages keeps the trend bias positive. A dip could find support at the 50-day SMA at $4,221.80, while the 100-day SMA at $4,008.18 underpins the broader trend. The 200-day SMA at $3,659.96 remains a distant floor. A close below the 21-day SMA would shift the tone toward consolidation, while sustained trade above these rising averages would leave the path open for further extension.
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