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Gold (XAU/USD) remains firm during the North American session on Thursday amid a low-volume trading session as US markets remain closed in observance of the Thanksgiving holidays. At the time of writing, XAU/USD trades at $4,158, virtually unchanged.

XAU/USD stays firm in thin Thanksgiving liquidity as Fed easing expectations rise

On Thursday, Bullion prices seem to be consolidating amid the lack of news. However, the recent US government reopening opened the door for economic data, which so far reassured that the US jobs market remains solid and that inflation stalled and might resume its downward path.

This increased the chances of additional easing by the Federal Reserve (Fed), as shown by the CME FedWatch Tool with odds at 85% for a cut of 0.25% to 3.50%-3.75%.

A dovish Fed puts pressure on US Treasury bond yields, with the 10-year T-note yield diving below 4%. However, peace talks between Russia andUkraine could sap demand for Gold’s safe-haven status.

Contrarily, Japan-China tensions increased following Prime Minister Sanae Takaichi's remarks in support of Taiwan’s independence. Rising geopolitical risks could drive the Gold price higher, along with a Fed cutting rates.

Daily market movers: Gold holds firm despite strong US jobs data

• US Initial Jobless Claims rose by 216K in the week ending November 22, beneath forecasts for a 225K rise and down from the previous pricing of 222K. Unemployment claims reached their lowest level since April, an indication that the labor market is solid, despite cooling.
• Inflation in the US edged lower as the Core Producer Price Index (PPI) for September dipped. Retail Sales have shown signs that households are reducing spending.
• Physical Gold exports from Hong Kong to China dipped, an indication that the Bullion might remain subdued in the near term.

Technical analysis: Gold price consolidates around $4,150

Gold sits at around $4,160, with traders unable to challenge the $4,200 milestone even though the Relative Strength Index (RSI) is bullish, showing that buyers are in charge. A breach of the $4,200 mark would expose key resistance levels like $4,250, $4,300 and the all-time high of $4,381.

Conversely, the bulls' failure to hold firm at $4,150 and $4,100 clears the path to test the 20-day Simple Moving Average (SMA) at $4,074 and the $4,000 mark.

(Click on image to enlarge)

Gold daily chart

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