Key US Data Due

Gold prices are holding near highs on Tuesday as traders brace for a slew of key US data over the coming sessions. Looking ahead today, US consumer confidence and the JOLTS job openings number will be watched ahead of the ADP employment figure and advance quarterly GDP tomorrow. On Thursday, focus will then turn to the core PCE number ahead of the headline NFP labour market report on Friday. An upside surprise in last month’s NFP data saw USD trading firmly higher as traders scaled back near-term Fed easing expectations. If we see any further upside on Friday we could see this dynamic strengthen as traders further reduce dovish Fed expectations.

US Elections

Gold prices have remained bid in recent weeks, despite the resurgence in USD strength. This resilience has largely been attributed to uncertainty ahead of the US elections next week, as well as ongoing geopolitical risks linked to the conflict between Russia and Ukraine and Israel’s war in the Middle East.

NFP in Focus

If we see any meaningful move higher in USD in coming days linked to any bullish data surprises, this could weigh on gold sentiment, particularly if we get another unexpectedly strong NFP. However, given the proximity to the elections, gold prices look likely to remain supported near-term and it would take some big data surprises to shake the current dynamic.

Technical Views

Gold

The rally in gold has seen the market breaking out above the 2,684.76 level. With momentum studies bullish, focus is on a continued push higher while price holds above this level. Back below here, focus turns to 2,604.56 as the next support to watch.