• Gold price has refreshed the day’s high at $1,640.00 as DXY has declined after failing to cross 113.00.
• Mixed signals from associated asset classes indicate anxiety among investors ahead of the US NFP data.
• A decline in labor cost data could impact households’ sentiment.

Gold price (XAUUSD) has extended its recovery after overstepping the intraday hurdle of $1,632.22. The precious metal has climbed to $1,640.00 and is not showing any sign of exhaustion yet. S&P500 futures are bound in a marginal territory, however, the US dollar index (DXY) has witnessed minor correction after failing to cross the critical hurdle of 113.00 but is still holding the day’s low.

Mixed responses are coming from different asset classes, which could be signs of anxiety ahead of the release of the US Nonfarm Payrolls (NFP) data. According to the preliminary estimates, the US economy created additional 200k jobs in October against 263k recorded in September month.

Apart from that, the catalyst that is making investors anxious about the employment report is the Average Hourly Earnings data. The labor cost data is seen lower at 4.7% vs. the prior release of 5.0%. A decline in earnings could dent households’ sentiment as higher payouts won’t get offset by subdued earnings. This could lead to a further decline in consumer spending.

Gold technical analysis

On an hourly scale, the gold prices have formed a Double Bottom chart pattern that signals a bullish reversal. The asset has recovered vigorously after testing October 21 low at $1,617.35.

The precious metal has comfortably crossed the 20-and 50-period Exponential Moving Averages (EMAs) at $1,632.71 and $1,636.06 respectively, which adds to the upside filters.

Meanwhile, the Relative Strength Index (RSI) (14) is attempting a break into the bullish range of 60.00-80.00, which will strengthen the Gold bulls further.

Gold hourly chart