Potential Bearish Signals in Gold Futures

Gold’s recent price reversal could trigger a short-term correction, with a break below $2,731.63 likely confirming this bearish chart pattern. If the reversal plays out, we expect gold to test the $2,708.76–$2,697.28 support zone over the next few sessions. A decisive break below this range could accelerate selling toward the 50-day moving average of $2,624.71. Conversely, if prices push above the recent high of $2,790.17, this would negate the reversal, resuming the broader uptrend and supporting gold’s bullish momentum.

Gold Recovers on Profit-Taking and Election-Driven Demand

After profit-taking hit the market on Thursday, pushing gold 1.5% lower, prices rebounded as investors awaited economic insights from the U.S. jobs data. Despite the recent pullback, gold remains up 4% in October as uncertainty ahead of the Nov. 5 U.S. presidential election sustains demand for safe-haven assets.

Traders have kept a close watch on political and economic indicators, with the gold market responsive to any shifts in polling between Donald Trump and Kamala Harris, as the race tightens. Additionally, Citi projects gold may reach $3,000 per ounce within six months, citing labor market concerns and sustained ETF inflows as key drivers.

Dollar, Treasury Yields Stable Before Jobs Data Release

The U.S. dollar held steady on Friday, supported by a series of economic data suggesting robust underlying economic conditions despite anticipated Fed rate cuts.

The October NFP report is expected to show an increase of roughly 100,000 jobs, a slowdown from September’s 254,000 figure. Analysts, however, caution that external factors, such as recent hurricanes, could weigh on the numbers.

Treasury yields were flat, with markets largely pricing in a 25-basis-point rate cut at the Fed’s November meeting. Dollar strength remains a central theme, supported by reduced expectations for aggressive rate cuts.