GOLD PRICE CONSOLIDATES AHEAD OF NOVEMBER NFP REPORT

• POTENTIAL CATALYST
• TECHNICAL VIEW 

Gold prices continue to consolidate within a range as traders focus on the upcoming Non-Farm Payrolls (NFP) report for November 2024, set to be released this Friday December 6, 2024, at 5:30pm GMT+4. The Upcoming U.S employment data and ongoing geopolitical developments are expected to play a critical role in shaping gold's future trajectory. The November jobs report, along with other labor market indicators like unemployment claims, will provide key insights into the strength of the U.S economy and could influence Federal Reserve policy expectations and decision in about two weeks from now.
            Meanwhile, geopolitical tensions although currently subdued, remain an unpredictable factor that could quickly reignite safe haven demand. As at the time of writing, gold prices continue to consolidate as the market assesses these factors and maintaining a cautious approach in the absence of immediate catalysts.

POTENTIAL CATALYST:

Later today, at 5:15 PM GMT+4, the market awaits the US ADP Nonfarm Employment Change, forecasted at 152K. This will be followed by the ISM Services PMI at 7:00 PM, with a forecast of 55.7. To conclude the day, attention will shift to Federal Reserve Chair Jerome's remarks at 10:45 PM, which could provide hints about the central bank's next moves.
On Thursday the 5th of December at 5:30pm GMT+4, the US unemployment claims report is due, with a forecast of 215K. Wrapping up the week, the November US jobs report will be released, with expectations of 218k jobs added. Any deviations from this figure, similar to last month, could trigger significant market movements.

TECHNICAL VIEW:

Gold price has been consolidating since the 26th of November 2024, finding support near $2,620 zone. As of 11:32 AM GMT+4 (Dubai time), gold spot is down 0.02% for the day, trading at $2,643.98 per ounce. The yellow metal faces resistance around $2,655. A break above $2,665 could pave the way for a test of a barrier level of at $2,680. Conversely, a close below the $2,620 support may trigger a decline toward $2,600. This is according to analysts. In the wake of these economic data in view, further breakouts on either side of this gold price consolidation remain possible, keeping traders alert for potential volatility.

Fig. 1 Gold spot 1H, Trading View.