XAUUSD is moving higher towards the psychological level of $2400 after the latest US jobless claims data, which increased bets for a Fed rate hike.

Initial jobless claims, the number of people who filed for unemployment benefits for the first time last week, jumped to 231K from 209K on Apr 27. This is the largest increase since Sept. 2, 2024.

This, along with the weaker (175K actual vs. 243K expected) non-farm payrolls reported last week, may indicate that the U.S. labor market is cooling down. This may contribute to the Fed's much anticipated decision to begin cutting interest rates.

Lower interest rates could lead to higher gold prices.

Despite this week's gold-friendly developments, investors may remain cautious, keeping an eye on further U.S. macroeconomic data as well as geopolitical developments that could influence the fate of gold prices.

A sudden escalation in geopolitical tensions could potentially push gold towards it's all-time high of ~$2431.

Events taking place today:

• [02:00 PM UTC] Michigan Consumer Sentiment (Prelim): 76 - Forecast; 77.2 - Previous
  • A higher-than-expected reading may result in XAUUSD moving lower, while a higher-than-expected reading may result in a weaker USD and stronger gold
• [04:45 PM UTC] Fed Goolsbee speech
• [05:30 PM UTC] Fed Barr speech

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