Gold is holding firm above recently breached resistance levels as markets await critical US payroll data, according to OCBC analysts Sim Moh Siong and Christopher Wong. The precious metal has maintained its breakout momentum, benefiting from a confluence of supportive factors including falling oil prices, declining bond yields, continued central bank accumulation, and renewed ETF inflows. Technical positioning has also reinforced the rally, with traders respecting the newly established support zone.
The timing is crucial as Friday’s US employment figures could determine whether gold extends gains or faces profit-taking pressure. Lower yields have reduced the opportunity cost of holding non-yielding gold, while institutional demand from central banks signals confidence in the metal as a reserve asset. Oil’s weakness has also eased inflation concerns, potentially extending the Fed’s flexibility on rate policy.
FXnCO Insight
Traders should watch payroll data closely—stronger-than-expected employment could trigger yield rebounds and test gold’s newly established support, while weak data may accelerate the breakout toward higher resistance levels.
Source: FXStreet