GOLD Approaching 2,100 After NFP Data!

Price Movement: Gold is on an upward trajectory, nearing the $2,000 mark. This is attributed to negative US Jobless Claims data, which is impacting the US Dollar. Additionally, US Treasury bond yields have breached the 4.70% level.

Trading Strategy: Traders are adopting a "buy the dips" strategy in gold, as long as it remains above the critical support level at $1,963.

Technical Indicators: The 14-day RSI suggests the potential for further price increases. Several SMAs, including the 21- and 50-day and 21- and 100-day, indicate a bullish trend. A daily closing above the 200-day SMA could signal sustained upside.

Resistance and Support Levels: The immediate resistance is at $1,993, and a break above this level could retest the $2,000 threshold. To maintain the uptrend, acceptance above $2,009 is crucial. On the downside, if $1,963 support is breached, a drop to the $1,950 level is possible, and further decline could test the October 19 low of $1,945.

Market Factors: Gold's recovery is influenced by a decrease in US Treasury bond yields following the FOMC policy meeting, where the Federal Reserve left the key policy rate unchanged. Jerome Powell's comments, while not ruling out another rate hike, were perceived as less hawkish than expected, which weakened the US Dollar and boosted gold.

Mixed Economic Data: The US Dollar faced headwinds from mixed economic data, including lower-than-expected private sector payrolls and a drop in the ISM Manufacturing PMI.

Market Sentiment: Market sentiment is also influenced by the potential for future interest rate hikes by the Federal Reserve, with some investors paring back expectations of a rate increase in December and January.

Global Events: The safe-haven US Dollar is undermined by a global risk rally, overshadowing geopolitical conflicts like the Hamas-Israel situation.

Bank of England Decision: Gold traders are keeping an eye on the Bank of England's monetary policy decision, which is expected to remain unchanged. A dovish BoE stance could impact currency markets and indirectly affect gold prices.