- Gold price keeps its range near $2,640, as US employment data will trickle in on Tuesday.
- The US Dollar holds recovery following Trump’s tariffs plan-led steep sell-off.
- Technically, Gold price awaits a range breakout as the daily RSI trades neutral.
Gold price is battling the short-term critical barrier at around $2,635 early Tuesday, consolidating the two-day corrective decline from three-week highs of $2,665. Gold traders refrain from placing fresh directional bets ahead of the top-tier US ISM Services PMI and JOLTS Job Openings data.
Gold price eyes US data for fresh trading impetus
Despite Monday’s two-way price movement, Gold price remains confined in a familiar range as traders weigh the latest reports surrounding incoming US President Donald Trump’s tariff plans and the US economic data releases for a clear direction heading into Friday’s US Nonfarm Payrolls data release.
Gold price reversed the Asian bounce and fell as low as $2,615 in the European session on Monday on fading China’s stimulus optimism and sagging physical Gold demand from India. The rising domestic Gold prices due to the depreciation of the Indian Rupee (INR) to record low dampened demand for the bright metal from the world’s no. 2 Gold consumer.
Further, Goldman Sachs pushed back its forecast of Gold reaching $3,000 per ounce, initially expected by the end of 2025. This also exerted downward pressure on Gold price.
However, Gold price found fresh buyers in American trading after the US Dollar (USD) fell steeply across the board following a report from the Washington Post (WaPo) that Trump's aides were exploring plans that would apply tariffs only on sectors seen as critical to US national or economic security.
Trump quickly denied the report in a post on his Truth Social platform, which allowed the Greenback to recover some ground, prompting Gold price to settle in the red.
Later this Tuesday, speculations around Trump’s tariff plans, the US jobs data and the broader market sentiment will play a pivotal role in the Gold price action. Meanwhile, a speech by Richmond Federal Reserve (Fed) President Thomas Barkin on the economic forecast will be closely scrutnized for gauging the Fed next policy move.
Gold price technical analysis: Daily chart
The daily chart shows that the 14-day Relative Strength Index (RSI) trades listlessly at the 50 level, leaving Gold price gyrating in a narrow range.
In doing so, Gold price clings to the 21-day Simple Moving Average (SMA) at $2,636 after failing to sustain above it on a daily closing basis on Monday.
The immediate support is now seen at the 100-day SMA at $2,627, below which the door will open for a retest of the previous week’s low of $2,596.
Ahead of that, the previous day’s low of $2,615 will offer some support to Gold buyers.
If Gold buyers regain control above the 50-day SMA barrier at $2,648, the next relevant topside barrier is seen at the three-week high of $2,665.
Further up, the $2,700 level will challenge bearish committments.
Economic Indicator
JOLTS Job Openings
JOLTS Job Openings is a survey done by the US Bureau of Labor Statistics to help measure job vacancies. It collects data from employers including retailers, manufacturers and different offices each month.
Read more.Next release: Tue Jan 07, 2025 15:00
Frequency: Monthly
Consensus: 7.7M
Previous: 7.744M
Source: US Bureau of Labor Statistics
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
EUR/USD turns lower below 1.0350 after German data
EUR/USD comes under mild selling pressure and eases below 1.0350 in the European session on Wednesday. The pair bears the brunt of an unexpected slowdown in the German manufacturing sector, as the nation's Retail Sales data fail to inspire the Euro. Focus shifts to US ADP data and Fed Minutes.
GBP/USD stays defensive below 1.2500 ahead of key US data, Fed Minutes
GBP/USD stays defensive below 1.2500 in the European trading hours on Wednesday, undermined by a risk-off market sentiment and elevated US Treasury bond yields on increased hawkish Fed bets. Traders look to US data, Fedspeak and FOMC Minutes for fresh trading impulse.
Gold eyes US ADP report and Fed Minutes for next push higher
Gold price is consolidating the previous rebound near $2,650 early Wednesday, awaiting the US ADP jobs report and the Minutes of the US Federal Reserve December meeting for the next leg higher.
DOGE and SHIB traders book profits at the top
Dogecoin and Shiba Inu prices broke below their key support levels on Wednesday after declining more than 9% the previous day. On-chain data provider Santiments Network Realized Profit/Loss indicator shows massive spikes in these dog-theme memecoins, indicating traders realize profits.
Five fundamentals for the week: Nonfarm Payrolls to keep traders on edge in first full week of 2025 Premium
Did the US economy enjoy a strong finish to 2024? That is the question in the first full week of trading in 2025. The all-important NFP stand out, but a look at the Federal Reserve and the Chinese economy is also of interest.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.