These trends indicate challenges for the U.S. economy in maintaining robust job growth. A weaker labor market could dampen consumer spending and slow economic activity, potentially putting pressure on the U.S. dollar. Market expectations predict an increase of 154,000 nonfarm payrolls, following November’s increase of 227,000. In addition, geopolitical tensions, such as the conflict between Russia and Ukraine and the unrest in the Middle East, further complicate the market.
Gold (XAU) Technical Analysis
Gold Day Chart – Ascending Widening Wedge
The daily gold chart shows the price recovering from the support level of a rising, widening wedge pattern. The price remains within a bullish trend, indicating potential for further upside. Moreover, within this pattern, the price has formed a symmetrical triangle, indicating a continuation of the positive trend. With the release of the NFP data on Friday, strong resistance is seen at $2,720, which will need to be cleared before a meaningful rally can begin. On the other hand, the price needs to break below $2,550 to signal further bearish momentum.