Article by: ETO Markets

This week, the European Central Bank (ECB) announced the much-anticipated 25 basis point rate cut, which also increased market confidence in the Federal Reserve's first rate cut in September. On Thursday, the number of initial jobless claims for the past week exceeded the expected 220K, reaching 229K. This is consistent with U.S. employment data released earlier this week, all reflecting a worsening employment environment in the United States, which could help the Federal Reserve achieve its inflation target.

The continuous disappointments in U.S. employment data have led gold investors to hold a pessimistic outlook on tonight's non-farm employment change and unemployment rate announcement. The market appears to be pricing in this news in advance. As a result, gold prices continued their strong performance from the past two days in the Asian session this morning, reaching a new two-week high of around $... The non-farm employment report, which will influence the Federal Reserve's future policy decisions, is expected to provide new momentum for gold tonight.

Gold buyers have taken control, completely reversed the trend and firmly positioned gold above the 20-day simple moving average (DMA) level of $ ... Meanwhile, the Relative Strength Index (RSI) has not yet reached the overbought zone and remains bullish. Buyers maintain strong momentum and are poised to challenge the $… resistance level, followed by the high of $... The 50-day simple moving average (DMA) at $… provides support for gold; a break below this level would be needed to attract more sellers.