Gold Prices Stabilize Around $3,550 Amid Mixed U.S. Economic Data

Gold Prices Stabilize Around $3,550 Amid Mixed U.S. Economic Data

XAU/USD, the gold trading pair, has found footing near the $3,550 after a spike in volatility. Both created a significant bullish reversal earlier in the day. It rejected off the 20-day simple moving average (SMA), which is presently providing dynamic support at $3,522.80. Spot gold reached a record $3,578.50. It had pulled back down to $3,511.18 at the time of writing on Thursday morning, which is what has caused this stabilization.

This spike and subsequent fall can be uniquely attributed to the string of economic indicators released from the United States. The next Nonfarm Payrolls report is expected to confirm a slowing labor market with the creation of only 75,000 new jobs in August. This labor market data has very much set the tone for the trading environment. Experts are forecasting a minor tick up in the unemployment rate to 4.3%, from 4.2% last reported.

In the week ending August 31, initial jobless claims jumped to 237,000, which can be a sign of an employment trend reversal. In a major departure from that services strength, jobless claims continue to climb. In August, the sector’s output stomped expectations, and the index stomped in at a solid 52. The Prices Paid Index decreased to 69.2 from 69.9, indicating a cooling of inflationary pressures.

As XAU/USD trades just above the $3,550 level, it has managed to trim most of its intraday losses following these reports. Furthermore, the pairs are facing significant resistance observed at $3,580.00, $3,600.00, and $3,615.00 levels. On the flip side, there are clear support levels at $3,546.70, $3,534.45, and the key support as outlined above at $3,522.80.

The dynamic relationship between gold prices and U.S. economic indicators is still there. Market participants always pay close attention to these statistics as they read the tea leaves about what it means for future monetary policy and market risk appetite. XAU/USD’s resilience in the face of mixed economic data is a testament to gold’s safe-haven appeal in times of uncertainty.

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