Gold’s is treading water above $1700, as markets await the pivotal US jobs report due later today.
Gold’s recent resurgence has been fuelled by the revival of “dovish pivot” bets, amid nascent hopes that the Fed may not have to keep US interest rates higher for longer.
The precious metal managed to clamber back above the psychologically-important $1700 mark this week, only to be resisted by its 50-day simple moving average (SMA) and has eased lower since.
Bullion bugs stopped short of bettering the mid-September high, which suggests that hopes for the Fed’s “dovish pivot” are still premature.
Gold bulls would need further signs that the Fed can afford to be less aggressive in its ongoing battle against inflation in order to send the precious metal higher.
A lower-than-255k headline NFP print, or a higher-than-3.7% US unemployment rate, may garner more believers towards that “dovish pivot” narrative.
However, if the US jobs market continues to showcase its resilience, that may drag gold back into sub-$1700 territory once more.