The NFP employment data report tonight should provide a CLEAR indication of the expected implementation of interest rate cuts by the FED. Therefore, tonight's data report is expected to have a big impact on the gold market.
Expected Market Data Expected SARACEN MARKETS Previous Reading
Nonfarm Payrolls (NFP) 190,000 200,000 272,000
Average Hourly Earnings 3.90% 3.90% 4.10%
The price of gold will jump up if the SET data report reading above shows "less" compared to the market's expected report reading.
This at the same time provides a strengthening of market sentiment for the implementation of interest rate cuts in September 2024.
It also puts "bearish" pressure on the American Dollar. However, if the SET of data reports above shows a SURPRISE, i.e. the actual reading "exceeds" the reading of the market's expected report, it is seen to be capable of severely suppressing the price of gold.
Technical Analysis
Based on the daily chart, the $2,370 price level is a barrier. If the level is successfully broken, the price of gold can be traded up to the level of $2,400.
But if it's the other way around, $2,328 is seen to be the last defense before continuing to plunge at least to the $2,300 level.
