Here’s the XAUUSD news update for today, December 8, 2023. Gold prices (XAU/USD) have remained stagnant for four consecutive days, staying within a range during Friday's European session. Traders are cautious ahead of the release of the US Nonfarm Payrolls (NFP) report, which could impact the market. Expectations of dovish Federal Reserve (Fed) policy support gold by weighing on the US Dollar.
 
Despite rising US bond yields, hopes that the Fed will not raise interest rates and may ease its policy in the first half of 2024 continue to provide support for non-yielding gold. Global economic uncertainty, particularly in China, and geopolitical tensions limit the decline of XAU/USD.
 
Daily Market Movers Summary: Gold prices have yet to find a clear short-term direction ahead of the US NFP.
 
  1. Market confidence in Fed rate cuts in 2024 continues to drive gold prices.
  2. US labor market data shows signs of weakness, reinforcing dovish Fed expectations.
  3. There is over a 60% chance of a Fed rate cut in March 2024, according to the CME FedWatch Tool.
  4. The US 10-year bond yield has risen, providing support for the US Dollar and capping gold’s gains.
  5. Stability in the Middle East, along with a risk-on rally in US stocks, limits safe-haven demand for XAU/USD.
  6. Traders are focused on US employment details for further clues on Fed policy.
  7. The NFP is expected to show job growth of 180,000 in November, with the unemployment rate remaining at 3.9%.
  8. Attention is also on Average Hourly Earnings data, projected to increase by 0.3% this month and 4% year-on-year.
  9. A negative surprise could prompt the Fed to loosen policy, benefiting gold amid global economic uncertainty and geopolitical tensions.
 
Technical Analysis: Gold prices continue to consolidate, with bullish potential remaining strong.
 
From a technical perspective, the price movement in the last four days has shown a rectangular pattern on the short-term chart, indicating a consolidation phase before the next move. The lower boundary of the range now coincides with the 100-period Simple Moving Average (SMA) around $2,015-$2,014, serving as a crucial point before reaching the psychological level of $2,000. A breakout below this level could pull gold prices down to horizontal support at $1,977-$1,976, potentially reaching the 200-day SMA near $1,950.
 
On the other hand, the $2,038-$2,040 area, as the upper end of the multi-day trading range, remains a barrier. Sustained strength above this level is viewed as a bullish trigger with the emergence of a golden cross, where the 50-day SMA rises above the 200-day SMA. Oscillators on the daily chart remain comfortably in positive territory and far from the overbought zone, indicating that the strongest price movement for gold is upward. Further increases may face resistance around $2,045 before reaching the $2,071-$2,072 area and the round level of $2,100.
 
Warning!
 
This is an explanation regarding "XAUUSD Today: December 8, 2023 - Traders Anticipate US NFP." This analysis is based on fundamental and technical perspectives from trusted sources and is not intended as advice or a recommendation. Always remember that this content aims to enrich the information available to readers. Conduct independent research first regarding other forex information to serve as a reference for your trading.
 
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