Gold Prices Near Record Highs as Market Eyes U.S. Payroll (NFP) Data
Gold prices continued their upward trajectory on Friday, nearing record levels and marking a sixth consecutive weekly gain.
The surge is fueled by escalating trade tensions and investor demand for safe-haven assets ahead of the U.S. employment report. As global uncertainty persists, analysts anticipate further bullish momentum in the gold market.
Gold Surges as Investors Seek Stability
U.S. gold futures climbed 0.5% to $2,889.80, reinforcing the metal’s role as a preferred hedge against geopolitical and economic uncertainty. According to Brian Lan, managing director at GoldSilver Central, “It’s still a trending market, and we will continue to see gold prices pushing to newer heights because now it’s uncharted territory.”
The rally follows China’s formal dispute with the U.S. at the World Trade Organization (WTO) over tariff policies. The move has heightened investor concerns, prompting a rush toward gold. Meanwhile, Goldman Sachs maintains its $3,000 target for gold prices, citing potential upside risks if U.S. policy uncertainty persists.
Fed Policy and Economic Indicators in Focus
All eyes are now on the U.S. nonfarm payroll report, scheduled for release at 13:30 GMT, which could offer clues about the Federal Reserve’s monetary policy stance. The Fed has already signaled a 100-basis-point rate cut cycle, and Chicago Fed President Austan Goolsbee emphasized that the central bank will continue adjusting policy cautiously.
Gold typically thrives during periods of low interest rates, as it reduces the opportunity cost of holding the non-yielding asset. With U.S. Treasury yields expected to decline, analysts at ANZ Bank suggest that gold’s holding costs will decrease, further supporting its bullish outlook.
Gold Price Technical Outlook
Gold (XAU/USD) is currently trading at $2,865.95, showing slight intraday weakness but maintaining a strong uptrend. The price action remains above key moving averages, reinforcing the bullish sentiment.
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Immediate Support: $2,852.67 – Aligns with an ascending trendline.
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Next Support: $2,842.58 – Near the 50-day EMA, offering additional stability.
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Immediate Resistance: $2,882.74 – Tested multiple times, a breakout could push prices higher.
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Key Target: $2,912.17 – A break above this level may signal further bullish momentum.
The 50-day EMA at $2,842.58 continues to act as dynamic support, and if gold remains above this level, the outlook stays bullish. However, a dip below this point could indicate a short-term retracement toward $2,820.59.
Market Outlook: Further Upside Likely
Gold remains in a well-defined uptrend, supported by macroeconomic uncertainty and Federal Reserve policy shifts. Investors should watch $2,852.67 as a critical pivot level. A breakout above $2,882.74 would signal renewed buying interest, while a move below $2,842.58 could open the door to further consolidation.
Key Takeaways:
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Gold trades near $2,865, supported by safe-haven demand and Fed rate expectations.
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Immediate resistance at $2,882.74, with a breakout potentially targeting $2,912.17.
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50-day EMA at $2,842.58 serves as a crucial support level for continued bullish momentum.
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