Gold resumed its upward march this week, powering to fresh peaks above $2060, and is trading at $2,053 at press time.
After drifting rangebound for much of January, gold (XAU/USD) caught a renewed bid this week as bond markets rallied. Yields on US 10-year and 2-year Treasuries plunged from recent highs, weakening the dollar and boosting gold’s appeal as an inflation hedge.
The renewed haven buying comes on the heels of the Fed’s latest policy meeting, which signaled a downshift to smaller rate hikes that could persist if economic conditions don’t deteriorate materially.
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Economists expect the US added 180,000 jobs last month alongside a slight uptick in the unemployment rate to 3.8%—a recipe that may hint at easing Fed tightening if realized. Balancing fears of an abrupt recession with stubborn inflation has whipsawed traders for over a year.
Could Gold price hit $2,100?
Indeed, while the US manufacturing sector remains slightly contractionary based on Institute for Supply Management data, the pace of decline eased in January.
If Friday’s jobs data confirms the trend of moderating growth rather than runaway wage gains, gold may sense a smoothed runway towards $2100.
In the near term, technical gauges also align with further upside after gold’s decisive break above its 20-day simple moving average and bullish crossover between various medium-term averages.
With key support now around $2040 and bullish momentum accelerating across daily and 4-hour timeframes, the path of least resistance appears higher, barring any shocks from upcoming event risks like Friday’s jobs and wage growth metrics.