Gold holds steady around $2,300, above one-month low ahead of US NFP – Crypto News

• Gold price struggles to gain any meaningful traction amid mixed fundamental cues.
• The Fed’s less hawkish outlook drags the USD to a multi-week low and lends support.
• Bets for a delayed Fed rate cut and a positive risk tone cap gains ahead of the US NFP.

Gold price (XAU/USD) remains on the defensive for the second straight day on Friday, albeit manages to hold its neck above a nearly one-month low touched earlier this week. The Federal Reserve (Fed) indicated on Wednesday that it was in no hurry to cut interest rates in the wake of still sticky inflation. This, along with a generally positive tone around the equity markets and easing geopolitical tensions in the Middle East, turns out to be a key factor undermining demand for the safe-haven precious metal. 

The downside for the Gold price, however, remains cushioned in the wake of the prevalent US Dollar (USD) selling bias, led by Fed Chair Jerome Powell’s less hawkish remarks, saying that the central bank is still leaning towards cutting rates. This, in turn, could act as a tailwind for the Gold price. Traders also seem reluctant and opt to wait for the release of the US monthly jobs data for cues about the Fed’s rate-cut path, which, in turn, will play a key role in influencing the next leg of a directional for the XAU/USD. 

Daily Digest Market Movers: Gold price struggles to lure buyers as Fed rate jitters remain ahead of US NFP

• Expectations that the Federal Reserve will keep interest rates higher for longer, along with the upbeat market mood, turn out to be key factors undermining demand for the safe haven Gold price. 
• The Fed signaled on Wednesday that the next move will be to lower the policy rate, though it was in no hurry to begin cutting borrowing costs as the disinflationary process has slowed in recent months.
• The Fed’s less hawkish outlook led to the broad-based US Dollar weakness and helps limit the downside for the XAU/USD, warranting some caution before positioning for any meaningful downfall.
• Traders might also prefer to wait for the release of the closely watched US monthly employment details, or the NFP report, which is expected to show that the economy added 243K new jobs in April.
• Meanwhile, the Unemployment Rate is anticipated to remain steady at 3.8% during the reported month, while Average Hourly Earnings probably eased to the 4.0% YoY rate from 4.1% in March.
• The crucial jobs data might influence market expectations about the Fed’s future policy decisions, which, in turn, will drive the USD and provide some meaningful impetus to the non-yielding metal.

Technical Analysis: Gold price awaits break through the weekly range before the next leg of a directional move

From a technical perspective, the range-bound price action witnessed since the beginning of the current week constitutes the formation of a rectangle on short-term charts and points to a consolidation phase. Moreover, neutral oscillators on the daily chart warrant some caution for aggressive traders and confirm the near-term trajectory for the Gold price. Hence, any further weakness below the $2,300 mark might continue to find decent support near the $2,285-2,280 region, which if broken decisively should pave the way for deeper losses. The XAU/USD might then accelerate the fall towards the next relevant support near the $2,268-2,265 area en route to the $2,230-2,25 region and the $2,200 round figure.

On the flip side, the $2,326-2,328 region now seems to act as an immediate hurdle ahead of the $2,335 supply zone and the weekly top, around the $2,346-2,347 area. A sustained strength beyond will confirm a breakout through the short-term trading range and lift the Gold price to the $2,371-2,372 resistance. The momentum could extend further towards the $2,400 mark and the all-time peak, around the $2,431-2,432 area touched on April 12.