Comment on gold market

10 Ocak 2025

Today’s market analysis on behalf of Chris Weston Head of Research at Pepperstone

With US nonfarm payrolls in trader’s near-term sights, gold looks strong with many looking to buy into any initial into weakness that may come in the wake of the jobs report. Having closed higher for four consecutive sessions, and with price pushing above downtrend resistance from the all-time high of $2790, the buyers are, for now, in control, even if the move higher is more of a slow motion grind towards $2700. In a backdrop of consistently rising long-end bond yields and concerns that certain advanced economies may be headed towards a more pronounced stagflation environment, and also with the real possibility that we move into a tit-for-tat tariff standoff, gold becomes a defined portfolio hedge against that dynamic. And, while we all know how the saga ends, we move ever closer towards stalemate on the US debt ceiling, where once again the prospect that Congress takes an agreement to raise the debt limit right to the wire seems almost assured. For market participants who want to sleep well at night amid the increasing noise, gold offers portfolio protection here, and why the risk of a push into $2700 seems like the right play