Hawkish remarks from the Federal Reserve hinder gold's daily gains.
As of Friday, March 10, spot gold is temporarily reported at $1829.35 per ounce, with a closing price of $1830.62 per ounce yesterday. The overall trend of gold prices is currently fluctuating. Intraday focus is on the high point of $1834.82 per ounce and the low point of $1827.89 per ounce. On Thursday, the United States released jobless claims data. In the week ending March 4, initial jobless claims increased by 21,000 to a seasonally adjusted 211,000. Economists had predicted 195,000 initial jobless claims last week. The increase in initial jobless claims last week exceeded expectations, leading to hopes that weakness in the labor market would reduce the likelihood of the Federal Reserve accelerating its pace of interest rate hikes again. While Thursday's data offered some relief to traders, the highly anticipated February employment report to be released Friday evening is the main event. This report could determine whether the Federal Reserve raises its interest rate by 50 basis points at its March 21-22 meeting. According to a survey of economists, it is expected to show that employers added 205,000 jobs in February, significantly lower than the unexpectedly high 517,000 jobs added in January. Wages are expected to increase by 0.3% month-on-month and 4.7% year-on-year. If the final results exceed expectations, it will significantly increase the probability of the Federal Reserve raising interest rates substantially again. Moreover, we have seen hawkish remarks from Federal Reserve Chairman Powell during his testimony to Congress in the previous two days, indicating that the interest rate hike in March will be adjusted based on the latest data. Therefore, the non-farm payroll data to be released Friday evening will be particularly important. If the data significantly exceeds expectations and performs strongly, the probability of a 50-basis-point interest rate hike in March will increase significantly, boosting the dollar and continuing to put downward pressure on gold. Conversely, if the data falls short of expectations, gold may only see a limited rebound. Technically, on the daily chart, the Bollinger Bands are narrowing, and the KDJ indicator is showing a bearish crossover with increasing volume, indicating that the downward trend of gold has not changed. On the 4-hour chart, the KDJ indicator is showing a bullish crossover with increasing volume, and prices are starting to rebound slightly. However, the 50-period moving average continues to put downward pressure, supporting the expected downward trend in gold prices. If the price falls below $1788.20 per ounce, the next target for gold prices will be $1747.70 per ounce. On the other hand, it should be noted that if the gold price rebounds and breaks through $1828.70 per ounce and $1843.70 per ounce, this will stop the bearish scenario and push the gold price to start recovering, first testing the $1878.80 per ounce area.
Time:
2023-03-10 15:54
As of the close of business on Friday, March 10, spot gold is currently trading at $1829.35 per ounce, down from yesterday's closing price of $1830.62 per ounce. The overall price trend is currently showing consolidation. Gold price Intraday highs and lows are being watched at $1834.82 and $1827.89 per ounce, respectively.
On Thursday, the US released jobless claims data. Initial jobless claims increased by 21,000 to 211,000 for the week ending March 4, after seasonal adjustment. Economists had predicted 195,000 claims. The increase in initial jobless claims exceeded expectations, raising hopes that labor market weakness could reduce the likelihood of the Federal Reserve accelerating its pace of interest rate hikes again.
While Thursday's data offered some relief to traders, the highly anticipated February jobs report to be released Friday evening is the main event. This report could determine whether the Federal Reserve raises interest rates by 50 basis points at its March 21-22 meeting. Economists surveyed expect the report to show employers added 205,000 jobs in February, significantly lower than January's unexpectedly high 517,000.
Wages are expected to increase by 0.3% month-over-month and 4.7% year-over-year. If the final results exceed expectations, it would significantly increase the probability of another significant interest rate hike by the Federal Reserve. Furthermore, in his testimony to Congress over the previous two days, Federal Reserve Chairman Powell made hawkish remarks, indicating an adjustment to the March interest rate hike based on the latest data. Therefore, the non-farm payroll data to be released Friday evening will be particularly important.
If the data significantly exceeds expectations and shows strong performance, the probability of a 50 basis point interest rate hike in March will increase significantly, boosting the dollar and continuing to put downward pressure on gold. Conversely, if the data falls short of expectations, gold may only see a limited rebound.
Technically, on the daily chart, the Bollinger Bands are narrowing, and the KDJ indicator is showing a bearish crossover with increased volume, indicating that the downward trend in gold remains unchanged. On the 4-hour chart, the KDJ indicator shows a bullish crossover with increased volume, and prices are starting to rebound slightly. However, the 50-period moving average continues to put downward pressure, supporting the expected downward trend in gold prices. If the price falls below $1788.20 per ounce, the next target for gold prices is $1747.70 per ounce. On the other hand, it should be noted that if gold prices rebound and break through $1828.70 and $1843.70 per ounce, this would halt the bearish scenario, prompting a recovery attempt and initially testing the $1878.80 per ounce area.
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