Ripple's XRP captured the market's attention on Thursday following a pivotal filing by the Chicago Board Options Exchange (CBOE) to the Securities and Exchange Commission (SEC). The filing aims to list and commence trading XRP exchange-traded funds (ETFs) for asset managers including Canary Capital, WisdomTree, 21Shares, and Bitwise. This development marks a significant move in the cryptocurrency space, potentially broadening access and investment opportunities in XRP.
Meanwhile, Gold prices are resuming their record-setting rally early Friday, after a brief pause the previous day. The Relative Strength Index (RSI) for Gold is currently near 63, suggesting a positive bias. However, market participants are closely monitoring the impending US Nonfarm Payrolls (NFP) data, expected to play a crucial role in shaping the dynamics of the US Dollar and US Treasury bond yields.
In January, the US economy is anticipated to create 170,000 jobs, following a remarkable gain of 256,000 jobs in December. Additionally, Average Hourly Earnings are projected to rise by 3.8%, slightly down from a 3.9% increase previously. The Unemployment Rate is likely to remain steady at 4.1%. A robust US payroll report could bolster the US Dollar, potentially leading to a corrective decline in Gold prices.
As the Greenback consolidates weekly losses, it heads into Friday’s main event risk — the US employment data. A smaller-than-expected increase in the headline NFP figure, coupled with slowing wage growth, could indicate easing labor market conditions in the US. Such outcomes might revive dovish expectations from the Federal Reserve (Fed), driving Gold prices towards fresh all-time highs near the $2,900 threshold.
Gold buyers are eyeing a four-hour candlestick closing above the falling trendline resistance at $2,862 to confirm a bullish continuation pattern. On the downside, the falling trendline support at $2,826 serves as immediate cushioning for Gold prices. Should this level give way, the $2,800 mark will be challenged.
The potential for interest rate cuts by the Fed this year is anticipated to significantly impact both the US Dollar and US Treasury bond yields. Conversely, the ongoing US-Sino tariff war is expected to have minimal influence as markets anticipate no further escalation in trade tensions.