Gold Price Forecast: Can US Payrolls Trigger a Breakout Toward $5,000?
Key Points:
- Hormuz reopening hopes and a weaker US dollar supported the gold rally.
- Softer employment data helped gold, but strong price pressure kept the Fed cautious.
- A weekly close above $4,330 could confirm the bullish breakout.
Gold (XAU) extended its recovery on Thursday as Middle East diplomacy reduced the energy related inflation fears. The spot gold price rose for a fourth straight session and reached a seven-week high near $4,304. The weakness in the US dollar also supported the metal. But the latest US data presented a mixed economic picture. The JOLTS job openings, factory orders and ADP employment pointed to softer demand. At the same time, the ISM services and manufacturing data showed strong activity and persistent price pressure. These conflicting signals make the US payrolls data important for the next move in gold. This article discusses the latest developments in the Middle East, US economic data and technical levels that may shape the next move in gold.