Gold prices gained momentum despite rising US treasury yields. It hit an intraday high of $2,698 and currently trading around $2696.50.
Non-Farm Employment Change published on January 10, 2025: The economy in the U.S. gained more than twice its forecast by creating 256,000 jobs for December 2024; more than expected to grow with an additional 160,000, a solid job creation record, following November's revised addition of 227,000 jobs, while maintaining its previous value with a flat 4.2% unemployment rate. Average hourly earnings rose 0.4% from the prior month and were at about 4.0% annual growth. These better-than-expected jobs may influence Federal Reserve decisions concerning interest rates. The report paints a picture of a strong labor market as we start 2025, which is going to favor the market with more confidence in several asset classes.
Rate Pause Probability Rises Significantly
According to the CME Fed Watch tool, the chances of a rate pause have increased to 97.30% up from 89.30% a week ago.
Technical Analysis: Support, Resistance, and Trading Strategy
Gold prices are trading above both short-term and long-term moving averages confirming a minor uptrend. Immediate support is at $2,670, and a break below this level could lead to declines toward $2,650, $2,620,$2600/ $2,570, $2,559, $2,536, and eventually $2,500. The near-term resistance is at $2700, with potential price targets at $2725/ $2,775. It is good to buy on dips around $2660, with a stop-loss at $2,630 for a target price of $2,750
