Gold price: Here’s what to expect with US nonfarm payrolls in focus

Gold price rallied past $1,950 on Thursday; hitting its highest level in over nine months as the market digests the Fed interest rate decision. Even with the approved interest rate hike, the US central bank’s remarks favoured the precious metal as the US dollar dropped to its lowest level since April 2022. Further cues are expected in the form of nonfarm payrolls on Friday.


The Fed approved an interest rate hike of 25 basis points in its February meeting. Following the decision, the Fed Chair – Jerome Powell signalled that the bank remains keen on dealing with inflationary pressures. As such, further rate increases are expected in coming months. Granted, the extent of increases as highlighted by the FOMC officials depend on the impact of the hikes as well as developments in the US economy.

Even with these hawkish remarks, investors in the gold market were appeased  by Powell’s acknowledgement that “the disinflationary process has started”. The remarks pushed the dollar index to levels last recorded in April 2022; making gold less expensive for buyers holding other currencies.    

In the ensuing sessions, the nonfarm payrolls data will also impact gold price movements. A disappointing jobs report will likely weigh further on the US dollar while boosting the precious metal.  

Gold price prediction

After momentarily rising above the crucial level of 1,950 on Wednesday, gold price has extended its gains to a level last recorded on 21st April 2022. Indeed, the precious metal appears set to record its seventh straight week of gains. As at the time of writing, it was up by 0.12% at 1,952.45

Within the bull market, I expect gold price to continue trading above the 25 and 50-day exponential moving averages. Granted, 1,950 will remain a level worth watching in the immediate term as the market digests the Fed interest rate decision.

While I forecast that the bulls will remain in control in the short to medium term, the psychological level of 2,000 will likely be evasive as has been the case since 10th March 2022. More particularly, further rallying will likely be curbed at 1,985.67. On the flip side, a pullback will place 1,915 and 1.900 as the support levels to look out for.

gold price
gold price

Leave a Reply

Your email address will not be published.