- Gold hits new high of $2,770 after release of US JOLTS jobs data.
- The precious metal was also supported by falling oil prices, which is likely to reduce inflation and interest rates.
- XAU/USD is trading at a new high in line with its long-term bullish trend.
Gold (XAU/USD) hit a new record high of $2,770 on Tuesday after the release of lower than expected US JOLTS job openings data suggested that cracks in the US labor market were visible. This makes it more likely that the US Federal Reserve (Fed) will cut interest rates to protect growth. Low interest rates are positive for non-interest paying assets like gold.
US job openings fell to 7.44 million in September from a revised 7.861 million in August and below the estimate of 7.99 million, according to US Bureau of Labor Statistics (BLS) data.
Gold rises due to low oil prices
Gold was already rising due to falling oil prices, which fell 6.0% (Brent crude) on Monday due to news that Israel only attacked military targets in Iran, leaving its oil and nuclear installations unaffected. .
Cheap oil is likely to help maintain low levels of inflation globally as it reduces fuel and energy costs – a major factor in production, transportation and heating. This, in turn, is likely to accelerate the pace of decline in global interest rates, thereby increasing the attractiveness of gold for investors.
Gold is also dependent on safe-haven flows due to the ongoing conflict in the Middle East and the war in Ukraine escalating following news of North Korea sending troops to Russia.
Technical Analysis: Gold tests all-time high
Gold breaks the top of its mini range, which stretches from a low of $2,708 to an all-time high of $2,758.
Overall, the yellow metal is in a steady uptrend on all time frames (short, medium and long), which, given the technical principle that “the trend is your friend,” favors more uptrends.
XAU/USD daily chart
The break above the top of the range confirms the continuation of the bullish trend to the next big-figure target level, which is at $3,000 (round numbers and psychological level).
economic indicators
jolts job openings
JOLTS Job Openings is a survey conducted by the US Bureau of Labor Statistics to help measure job vacancies. It collects data every month from retailers, manufacturers and employers including various offices.
Read more.