Gold prices remain steady near $2,930 early Thursday, consolidating a three-day recovery while aiming for a retest of all-time highs around $2,956. The precious metal’s price has been supported by a weak US Dollar, as expectations grow that the Federal Reserve may cut interest rates further amid concerns over a slowing US economy.
Upside Risks for Gold as Tariff Fears and Economic Data Weigh
Gold is currently in a brief consolidation phase, with investors pausing before potentially driving prices higher. Demand for gold remains robust, supported by ongoing USD weakness, economic concerns, and speculation about interest rate cuts. President Donald Trump’s tariff war has also fueled inflation fears, reviving concerns of stagflation. Despite a one-month delay in auto tariffs and possible agricultural exemptions for Canada and Mexico, the USD struggles due to disappointing economic data and the continued rally in the EUR/USD pair.
ADP Research’s recent report showed a disappointing 77,000 private-sector jobs added in February, far below expectations of 140,000. However, the ISM Services PMI rose to 53.5, exceeding forecasts, and the Services Employment Index also jumped, reaching 53.9. Meanwhile, the Euro surged to a four-month high against the US Dollar, boosted by rising German bund yields, capping gold’s price recovery.
Focus on Friday’s Nonfarm Payrolls and US Data Releases
Traders are looking to Friday’s Nonfarm Payrolls (NFP) report to gain insight into the Fed’s monetary easing plans. Amid trade tensions, developments in US jobless claims and updates on tariffs will also be watched closely. The European Central Bank’s upcoming policy decision could influence the Euro and spur a rebound in the USD, potentially leading to a gold price correction.
Gold Price Technical Outlook
Gold’s short-term technical outlook remains stable above the 21-day Simple Moving Average (SMA) at $2,906. A sustained move above $2,930 could signal a continuation of the uptrend, targeting the $2,956 all-time high and potentially $2,970. On the downside, immediate support is at $2,906, followed by the $2,850 psychological level and the $2,835 demand area.
Conclusion
Gold prices are currently consolidating near recent highs, supported by a weaker US Dollar and ongoing economic uncertainties. The upcoming US economic data, particularly Friday’s Nonfarm Payrolls report, will likely determine the next direction for gold. Should the metal break through the $2,930 resistance, it could continue its upward trajectory toward record levels. However, any rebound in the US Dollar or corrective pullbacks may also impact gold’s price action in the short term.