Gold Bounces from $4,000 Support, Traders Eye US Jobs Data
Key Facts
Amid anticipation of US employment data, gold prices bounced 2.2% on Wednesday after failing to break below the $4,000 support level for the sixth consecutive time, according to specialist reports. The rebound followed strong defense of that level, triggering buying interest among traders.
This move follows mixed US economic releases: GDP grew 2.1% quarter-on-quarter, while the core PCE price index rose 0.3% month-on-month and 4.1% year-on-year, per Commerce Department data. Initial jobless claims fell to 215,000, signaling a robust labor market.
With markets now focused on upcoming US jobs reports, the data could provide fresh catalysts for gold. Traders are watching non-farm payrolls and the unemployment rate to gauge the future path of interest rates, determining whether the $4,000 support marks a temporary bounce or the start of a new uptrend.
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Update: Remarks by Fed's Kevin Warsh added momentum to the rally, as he signaled inflation could slow faster than expected, prompting traders to boost gold longs. This comes as the precious metal continues to test the strength of the $4,000 support level.