Gold opened Monday’s trading with gains of more than 1%, after rebounding from the solid support level of $4650, heading for a second consecutive session of gains.
Gold is currently trading near the bullish channel’s middle line, seeking to break above to regain its main upward trend. It should be noted that breaking above the channel’s middle line could push the yellow metal towards resistance levels of $5237 then $5509.
If gold stabilizes below the bullish channel’s middle line, it may test the weekly pivot point depicted at $4820. If the price breaks through this level, it may hit a notable decline towards support levels of $4547 then $4130.
On the economic front, attention turns this week to the release of postponed official U.S. employment figures for January.
The jobs report, closely monitored by investors, which was delayed following a short three-day federal government shutdown that concluded last Tuesday, is anticipated to show that the U.S. economy added 70,000 roles in January, down from 50,000 in the prior month. The data is due on Wednesday.
In the same vein, economists will be on the hunt for any indications that the U.S. labor picture is “stabilizing,” a characterization recently used by Federal Reserve Chair Jerome Powell.
Figures tracking U.S. inflation, set to be published on Friday, are also set to headline the economic docket.
The Labor Department’s headline consumer price index for the twelve months to January is projected to slow to 2.5%, decelerating from 2.7% in December. Month-over-month, inflation is expected to rise 0.3% in January.
In terms of geopolitical tensions, Iran has called on the United States to “respect” Tehran, amid the threat of war with the United States, saying the country does not understand the language of force.
Iran’s President Masoud Pezeshkian insisted that Tehran has the right to continue its uranium enrichment under the Non-Proliferation Treaty, as the two nations look ahead to another round of nuclear negotiations next week following mediated discussions in Oman.