Gold (XAU/USD) reached a new record high of nearly $2,190 in early New York trading on Friday. The release of US NFP data resulted in a decline in yield on 10-year US Treasuries to 4.04%, fueling this trend.
The market expects the Federal Reserve (Fed) to raise interest rates in June due to slowing wage growth and growing unemployment.
According to the US Bureau of Labor Statistics (BLS), the jobless rate has risen to 3.9%, exceeding expectations. 3.7% was the previous reading. In February, Nonfarm Payrolls (NFP) increased by 275K, exceeding the expected 200K. It was nevertheless lower than the previous measurement of 353K.
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The H1 chart indicates that the price is aiming for the psychologically crucial target of 2200-2225. As demand rises, so does the price. As distribution proceeds, consolidations occur.
There are sufficient strong support areas, but no retreat zones.
It is also feasible to test the local resistance after adjustment. However, caution should be exercised when managing the closest supports. An increase in the local dollar may cause a breach in gold support, perhaps leading to a sell-off.