On Friday (January 6), the international gold price rose slightly, and is expected to rise for the third consecutive week. In the short term, it is expected to regain $1,846. Investors are waiting for the U.S. non-agricultural employment report to be released at 21:30 Beijing time, in order to judge the Fed’s future rate hike path.
At 14:48 Beijing time, spot gold rose 0.35% to $1,838.9 an ounce; the main COMEX gold futures contract rose 0.16% to $1,843.5 an ounce; the U.S. dollar index rose 0.08% to 105.218.
Data released on Thursday (January 5) showed that U.S. private employment increased more than expected in December, while the number of Americans filing new claims for unemployment benefits fell to a three-month low last week, indicating that the labor market remains tight and may force the Federal Reserve to continue to increase interest rate.
IG Market strategist Yeap Jun Rong said: “Higher-than-expected job growth and longer-lasting wage pressures could be catalysts adding to selling pressure on gold. Gold prices have been trending higher since November last year as dollar bulls unwind their positions. In 2023, the gold price may continue to attract buyers, but it may face the risk of a strong pushback from policymakers.”
But the minutes of the Federal Reserve’s December policy meeting were released on Wednesday (January 4), and few Fed officials reiterated their continued struggle to reduce inflation to 2%, although St. There will be some relief.
“Gold is likely to remain above $1,800 an ounce until that happens, with labor market weakness looming,” Edward Moya, senior analyst at OANDA, said in a note.
On the daily chart, the price of gold is still in an uptrend ((3)) wave from $1,796, and is expected to regain its 100% target below $1,846. The ((3)) wave is the sub-wave of the upward wave III that started from $1773, and the wave III is the sub-wave of the upward wave (III) that started from $1725.