Gold Prices Find Support with Speculation of Fed's Policy Shift

Expectations that the Federal Reserve (Fed) might be approaching the conclusion of its tightening cycle, possibly followed by rate cuts in June 2024, have pushed US Treasury bond yields lower. This trend continues to weigh on the US Dollar (USD) and provides some support to gold, although buying interest remains subdued.

Geopolitical tensions in the Middle East and concerns about a slowdown in the Chinese economy contribute to the positive sentiment surrounding XAU/USD. Nevertheless, the absence of strong buying interest suggests caution among bullish traders. The upcoming US monthly jobs data (NFP report) may influence the Fed's future policy decisions, with an expected addition of 180K jobs in October, a decline from the previous month's 336K, and a steady jobless rate of 3.8%. Any significant deviation from these expectations could introduce volatility into financial markets and increase demand for the safe-haven metal. Despite overall positive risk sentiment, ongoing conflicts in the Middle East and China's economic challenges continue to support gold.

Gold rejects the support level representing the last resistance level which is a solid historical level. The long trend is more bullish and solid to continue especially with Treasuries yields down.

Resistance 3	Resistance 2	Resistance 1	Support 1	Support 2	Support 3
2040	2020	2006	1980	1947	1920