gold futures (GC)

Gold Futures (GC) Prices Pushing Lower Ahead of Nonfarm Payrolls

  • Gold futures have paused a two-day rally ahead of the nonfarm payroll data from the US.
  • Elon Musk’s plan to lay off workers could point to a poor job market.
  • The boost in oil production announced by OPEC may not be enough to satisfy global supply needs.

Gold futures (GC) are trading lower on Friday at 1867.85 ahead of the US jobs report. The precious metal used to hedge against inflation has been rising for the past two days after poor private-sector jobs data. Today’s report is bound to move gold futures either higher or lower, depending on how investors react.

The yellow metal has not moved much today, but it has pushed lower. There were warnings about the economic outlook from Tesla CEO Elon Musk, who plans to lay off 10% of his staff. Today’s jobs report could push gold futures higher as the private sector report did yesterday if it comes out negative.

Musk’s message came in shortly after the US economy’s challenges were described as a “hurricane” by JPMorgan Chase Chief Executive Jamie Dimon. These views show a risk of a recession that could see gold futures push higher.

The earlier relief felt from declining oil prices was short-lived. Analysts said the global economy would not feel the production boost as most OPEC members are already pumping at capacity. The only exceptions are Saudi Arabia and the United Arab Emirates.

On the other hand, a good jobs report could push gold prices lower, pointing to a stable jobs market. This news would reduce the panic in the markets, and risk sentiment would go up.

Gold Futures (GC) technical forecast:

Gold futures (GC) 4-hour chart
Gold futures (GC) 4-hour chart

Gold futures on the 4-hour chart are trading within a bullish channel. However, the RSI is gradually declining towards the 50.0 level. Meanwhile, the price is still above the 30-period SMA, indicating a bullish bias.

The price is currently on its way to the channel’s resistance, which coincides with the 1900.00 critical level. If this move plays out, we could see bulls pushing the price to 1900.00. However, if bears come back, we could see the price pushing lower and possibly breaking the channel’s support.