Here’s the update on XAUUSD today, November 2, 2023. Gold prices (XAU/USD) continue to attract buyers for the second consecutive day, especially on Friday, managing to maintain moderate intraday gains ahead of the European session.

Support for this trend comes from expectations that the Federal Reserve (Fed) is nearing the end of its aggressive monetary policy campaign, with plans to start lowering interest rates in June 2024.

As a result, the US dollar (USD) remains defensive. Additionally, factors such as tensions in the Middle East and concerns about an economic slowdown in China are also driving interest in precious metals, often considered safe havens.

However, despite the increase in gold prices during the intraday session, bullish sentiment still seems weak, with prices remaining below the important psychological level of $2,000. This occurs alongside a generally positive atmosphere in the stock market.

Investors also appear hesitant to take on significant risks and prefer to wait for the release of the US monthly employment details. The highly anticipated Non-Farm Payrolls (NFP) report could provide clues about the Fed's interest rate hike plans and may offer new direction for XAU/USD price movements.

Summary of Recent Gold (XAU/USD) Price Movements:

  1. Gold prices continue to fluctuate in a sideways consolidation pattern on Friday, awaiting new impetus to determine the next direction.
  2. Concerns over the Federal Reserve's interest rate policy negatively affecting US bond yields have weakened the USD.
  3. Despite a relatively strong US economy and high inflation, there is a chance of a Fed rate hike in December 2023 or January 2024.
  4. Fed Chair Jerome Powell mentioned that a slowdown in the labor market may be necessary for inflation to decrease.
  5. Therefore, the monthly US employment report (NFP) could significantly impact the Fed's policy and XAU/USD prices.
  6. The US is expected to add 180,000 jobs in October, down from 336,000 the previous month, with the unemployment rate steady at 3.8%.
  7. A significant deviation from these estimates could lead to market volatility and increase demand for gold as a safe haven.
  8. Additionally, tensions in the Middle East and economic issues in China continue to affect gold prices, despite the positive risk factors that also need consideration.

Warning!

This analysis is based on fundamental and technical insights from reliable sources and does not constitute advice or solicitation. Always remember that the content aims to enrich readers' information. Always conduct independent research on other forex information as a reference for your trading.

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