Gold, Silver, Copper Analysis: Dollar Dip & Jobs Data Shine on XAU/USD Value
NEW YORK (November 6) The Non-Farm Payrolls report for October showed a gain of only 150,000 jobs, missing the expected 180,000, hinting at a slowing job market which may influence the Federal Reserve to reconsider its aggressive rate hikes.
As a result, the prospect of stagnant wage growth opens up the possibility for a halt in rate increases, potentially benefiting gold prices. This sentiment is echoed by a decrease in U.S. services sector activity, suggesting a more dovish approach could be forthcoming.
Following this, the 10-year U.S. Treasury yields fell, supporting a positive perspective for gold. These reduced yields align with the economy potentially finding a stable middle ground, avoiding extremes of overheating or underperformance.
Concurrently, a weakened dollar, hitting a six-week low, has bolstered gold’s attractiveness, with market odds favoring the Fed’s pause on interest rates in December. The dollar’s drop is the most significant since July, reflecting anticipation of a less aggressive Fed and lower yields.
Gold’s value rose over 7% in October, fueled by its status as a safe-haven asset amid Middle Eastern tensions. While immediate conflict seems unlikely, gold’s recent surge might be followed by a period of price stabilization.
Gold's luster dulled slightly in today’s market, with a marginal drop of 0.27% bringing its value to $1,987.24. The 4-hour chart reveals a battleground at the $1,976 pivot point, with immediate resistance waiting at $2,009 and further barricades at $2,031 and $2,050. Support stands firm at $1,960, with additional safeguards at $1,944 and $1,923.
Technical indicators present a mixed sentiment; the RSI hovers near the neutral 50 mark, while the MACD shows a bearish trend as the line dips below the signal. The 50 EMA at $1,983 suggests a short-term bearish trend, corroborated by a sideways channel and neutral candlestick patterns like Dojis and Spinning Tops, indicating market indecision.
Despite the neutral undertones, a bullish momentum above $1,976 is plausible, potentially steering Gold towards testing higher resistances.
Silver's performance today was akin to a whisper in the wind, with a negligible uptick of 0.01% to $23.2345, yet it whispers of potential. The 4-hour chart is anchored at a pivot point of $22.93, eyeing resistances at $23.49, $23.81, and $24.17.
Supports at $22.58, $22.23, and $21.79 stand guard below. The RSI, at 60, hints at a bullish sentiment, while the MACD’s faint bullish trend echoes this optimism. The 50 EMA at $22.95, marginally below the current price, suggests a tentative bullish inclination.
A descending triangle pattern puts pressure on the $23.25 resistance, hinting at potential consolidation. With the trend tilting bullish above $22.93, Silver may soon challenge higher resistances, especially if it decisively breaks the pattern’s resistance.
Copper's technical landscape brightens as the metal closes at $3.74151, marking a 1.04% uptick on November 6. The 4-hour chart reveals a pivot at $3.7261, with immediate resistance waiting at $3.7662. Further barriers emerge at $3.8027 and $3.8502, while supports cushion at $3.6816, $3.6448, and $3.6072. The RSI, at 62, leans towards bullish sentiment without breaching overbought territory.
The MACD’s subtle nudge above its signal line whispers of bullish undercurrents. Copper’s trade above the 50 EMA at $3.6807 corroborates this short-term bullish bias. Chart patterns further bolster the positive outlook; a triple top breakout at $3.72 coupled with a bullish engulfing candlestick pattern heralds buyers’ conviction.
In conclusion, the metal’s trajectory tilts bullish above the $3.72 fulcrum. The technical indicators, chart patterns, and price action collectively suggest an inclination to test higher resistances in the near term, with an eye on the $3.7662 mark.
FXEmpire
