The price of gold was seen hovering around the $2,040 area since yesterday until the opening of the Asian trading session early this morning. It is due to the currency of the United States (US) dollar being seen to be heading towards recovery driven by US economic data this week.
According to Federal Reserve (Fed) Chairman Jerome Powell last December, some of his officials have discussed the expected interest rate cut in March. However, the indicators are now strengthening and the Fed plans to continue.
Meanwhile, US ADP data has also published a report on private employment figures. The report showed 164,000 additions and it was much higher than the market expectation of 115,000. The data also shows the labor market is moving positively in line with hiring during the pre-pandemic.
Today, investors should focus on the monthly NFP jobs report which is expected to show the economy added 170,000 new jobs in September.
Looking at the analysis, the gold market shows that the price has not moved significantly for two consecutive days around $2,040. Meanwhile, the 100 and 200 SMAs are centered around $1,950 with no clear bearish movement.
Technical indicators are at a neutral level and the Relative Strength Index (RSI) is still flat. However, the overall momentum is moving towards the downside. The potential for a price drop for gold remains above the support level of $2,030.
In addition, the movement according to the chart for 4 hours is still moving steadily. At the same time, the overall indicator moved down and rose slightly at the end of the week. This shows that 'buy' investors predominate over 'sell'.
