Gold began the week near 4,100 USD per ounce, but retreated after stronger US labour data firmed expectations of tighter monetary policy. After touching a local high of 4,106 USD, bullion slid nearly 1% to 4,060 USD as markets lifted the implied probability of a December Fed rate hike to around 77%, up from 67% the prior day. October payrolls rose by 165,000 versus a 65,000 forecast, while September was revised to 60,000 from 29,000; the unemployment rate eased to 4.1% from 4.2%. The dollar also drew support as the University of Michigan sentiment index improved to 51 from 48, even as annual inflation expectations cooled to 4.3% from 4.7%.
Geopolitical Developments and Market Focus
Geopolitics remained uneven, with US-Iran talks continuing alongside ongoing Houthi attacks on Saudi Arabia and reports Tehran is preparing for escalation. Focus now turns to US inflation data, unemployment claims and further Fed commentary.
Technical Analysis and Outlook for XAU/USD
On XAU/USD, a recovery wave is described after a dip to 3,874 USD: price reclaimed 4,032 USD and pushed towards 4,145 USD, with resistance also seen at 4,172 USD and 4,195 USD. A break back below 4,032 USD would shift attention to 3,972 USD; MACD is above zero but weakening, while Stochastic above 80 points to a potential near-term pullback.
Start trading now — click here to create your real VT Markets account.
