• The greenback fell after several reports showed a mixed picture of the economy.

• The US private sector employed 99,000 more individuals, missing estimates of 144,000.

• Investors will pay close attention to the upcoming nonfarm payrolls report.

The gold price analysis indicates solid bullish momentum as the yellow metal trades near a one-week high. Gold rallied in the previous session as the dollar fell after mixed economic signals. A weak dollar makes bullion cheaper for foreign traders, increasing demand.

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On Thursday, the greenback fell after several reports showed a mixed picture of the economy. Nevertheless, rate cut expectations remained high, putting pressure on the currency and supporting gold.

The US private sector employed 99,000 more individuals, missing estimates of 144,000. This was a red flag for the labor market, raising the chances that the nonfarm payrolls report will also be poor. A weak labor market increases the likelihood of a 50-bps rate cut, which is bullish for gold. At the same time, it raises the risk of a recession. During times of economic uncertainty, investors run to safe-haven assets like gold.

However, other US economic reports showed a slightly different picture. Unemployment claims fell more than expected last week, reducing fears of high joblessness. At the same time, business activity in the services sector jumped, showing economic resilience. Clearly, there are pockets of strength and weakness in the US economy. However, the focus of the Fed is the labor market.

Consequently, investors will pay close attention to the upcoming nonfarm payrolls report. A weaker-than-expected performance will likely raise rate-cut bets and boost gold prices to new highs.

Gold key events today

• US average hourly earnings m/m
• US nonfarm employment change
• US unemployment rate

Gold technical price analysis: Bulls stagnate at $2,520 resistance

On the technical side, gold is retesting the 2520.09 resistance level, with the price above the 30-SMA. At the same time, the RSI supports bullish momentum above 50. Therefore, the bias is bullish. Notably, gold has consolidated for a while between the 2480.38 support and the 2520.09 resistance.

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The previous trend was bullish, increasing the chances that the price will break above the range resistance. However, the RSI shows weaker bullish momentum as it trades in a bearish channel. Therefore, to break above the channel resistance and make a new high, bulls need a surge in momentum.

https://www.forexcrunch.com/blog/2024/09/06/gold-price-analysis-testing-weekly-top-amid-weak-dollar/