Gold closed the week in negative territory despite a late rebound. The technical outlook points to sellers’ hesitancy in the near term. Key employment data from the US and geopolitical headlines could continue to impact Gold prices. Gold declined sharply on easing geopolitical concerns on Monday and spent the rest of the week trying to recover its losses.
A figure above 200,000 could feed into expectations for a Fed policy hold in December and boost US T-bond yields, hurting Gold prices. On the flip side, a disappointing print, at or below 150,000, could keep the hopes for another 25 basis points rate cut alive, opening the door for a leg higher in XAU/USD ahead of the weekend. According to the CME FedWatch Tool, markets are currently seeing about a 65% probability of the Fed lowering the policy rate to the range of 4.25%-4.5% next month.