Gold Price Forecast: XAU/USD holds ground around $2,040

XAU/USD Current price: 2,044.10

• A stronger than anticipated US ADP survey hints at a firmer Nonfarm Payrolls report.
• FOMC Meeting Minutes put mild pressure on the US Dollar late on Wednesday.
• XAU/USD is comfortable at around $2,040, lacks directional strength.

XAU/USD trades little changed in the $2,040 area on Thursday, trimming early gains in the American session. The US Dollar came under mild pressure late Wednesday, pressured by mixed United States (US) data and the FOMC Meeting Minutes. The Federal Reserve (Fed) met in mid-December, and Chair Jerome Powell said policymakers put rate cuts on the table. Still, the Minutes provide no clues on when the Fed plans to proceed but only mention it’s possible in 2024.

Meanwhile, the US published the ADP survey on private job creation. The report showed 164K new positions were added, much more than the 115K anticipated by market players. The document also showed that the labor market is very much “aligned with pre-pandemic hiring,” somehow signaling a more stable situation. On Friday, the US will publish the monthly Nonfarm Payrolls (NFP) report, which is expected to show the economy added 170K new jobs in September.

XAU/USD short-term technical outlook

The daily chart for XAU/USD shows it met buyers for a second consecutive day around its 20 Simple Moving Average (SMA), which lacks directional strength. Meanwhile, the 100 and 200 SMAs converge around $1,950 without clear slopes. At the same time, technical indicators stand within neutral levels, the Relative Strength Index (RSI) indicator flat, but the Momentum is still heading lower. Overall, the bearish potential seems limited as long as the bright metal retains the $2,030 base.

In the near term, and according to the 4-hour chart, the pair is neutral. XAU/USD trades below a bearish 20 SMA but above a flat 100 SMA. At the same time, technical indicators remain within negative levels, but turned marginally higher, suggesting buyers outpace sellers intraday.

Support levels: 2,031.00 2,015.50 1,998.65

Resistance levels: 2,040.20 2,052.30 2,065.45