FxWirePro- Gold Trade Idea

Gold prices trade flat ahead of US NFP.  It hit an all-time high of $2882  and currently trading around $2868.

U.S. jobless claims rose by 11,000 for the week ending February 1 to 219,000, the Labor Department said. That was higher than economists' expectation of 213,000 claims. The four-week average, which helps smooth out fluctuations, went up to 216,750. The total number of Americans receiving unemployment benefits for the week of January 25 also increased to 1.89 million. Altogether, these numbers indicate a slight increase in unemployment claims in the U.S. job market. Markets eye US NFP for further direction.

Rate Pause Sentiments Climb

According to the CME Fed Watch tool, the chances of a rate pause in the Mar 19th 2025 meeting have increased to 85.5% up from 82% a week ago.

Technical Analysis: Key Levels and Trading Strategy

Gold prices are holding above the short-term moving averages 34 EMA and 55 EMA and long-term moving averages (200 EMA) in the 4-hour chart. Immediate support is at $2845 and a break below this level will drag the yellow metal to $2820/$2800/$2770/$2740. The near-term resistance is at $2880, with potential price targets at $2920/$2950. It is good to buy on dips around $2828-30 with a stop-loss at $2790 for a target price of $2900.