01.12.202215:30 Forex Analysis & Reviews: XAU/USD: A return to the bull market zone?

After the speech of Federal Reserve Chairman Jerome Powell on Wednesday, the dollar continued to weaken on Thursday, and prices for precious metals, in turn, continued grow. Thus, the price of gold is developing a "bullish" momentum above the key support levels 1759.00, 1770.00, moving towards the psychologically significant and local resistance level 1800.00.

As you know, gold quotes are extremely sensitive to changes in the monetary policy of the world's leading central banks, and especially the Fed. Given the high risks of a recession in the economy and continued inflation growth, as well as against the backdrop of Powell's softer rhetoric, the price of gold and the XAU/USD pair continue to rise, also taking advantage of the weakness of the dollar. Gold does not bring investment income but is in active demand during geopolitical and economic uncertainty, and a protective asset in the face of rising inflation.

A breakout of the 1759.00 key resistance level marked the return of XAU/USD to the long-term bull market zone.

Today, market participants will pay attention to the publication (from 13:30 to 15:00 GMT) of a whole block of important macro statistics for the United States. If it turns out to be positive, it will give dollar buyers a chance to take a breath. In the meantime, the dollar remains under pressure waiting also for the publication on Friday of the official report on the US labor market for November.

After a weaker ADP report with data on the number of new jobs created in the private sector of the US economy (employment in November improved by 127,000 against the forecast of 200,000 and the previous value of 239,000), market participants will be more cautious about the publication on Friday of the official report of the US Department of Labor. And although the first Friday of the month, when the monthly data of the US Department of Labor is traditionally released, is often called "pay day" by traders, the most cautious of them will probably prefer to stay out of the market on this day due to the traditionally expected sharp increase in volatility during the publication of this report.