All-Time highs for gold as job data looms

Gold and oil reaching new peaks, investors brace for impact of lower liquidity on market dynamics

By Farah Mourad | 1 April 2024

Market open
  • Gold hitting new all-time highs

  • Subdued activity in markets during Easter Monday

  • Focus shifts to the US jobs market this week

Stock Market

Over in Asia, the trading sentiment is showing upbeat signs, with indices posting gains supported by the positive performance of US index futures following last Friday's session, and the favorable economic releases from China, with government manufacturing PMI index surpassing expectations, rising to 50.8, well above the anticipated 50.1 and the previous reading of 49.1 points.

However, the Japanese market is facing some pressure as investors await the next move from the Bank of Japan. The USD/JPY pair is currently hovering around the 151 mark.

In Europe today, major markets are taking a breather for Easter Monday, resulting in subdued trading activity and thin liquidity. Traders are showing little enthusiasm for making significant moves in the absence of these key markets.

Commodities

Gold prices are on an upward trajectory, extending gains from last Thursday's surge above $2200 per ounce. Today, gold has hit all-time highs at $2265 per ounce, driven by growing speculation of a Fed rate cut in June. Despite a generally risk-on sentiment and a minor increase in the USD, the rally in gold persists. However, caution is advised due to the overbought RSI on the daily chart.

Similarly, crude oil prices are experiencing a robust start to the day, with WTI oil trading at its highest level since October last year, reaching $83.5 per barrel. This surge is fueled by expectations of new production cuts from OPEC+ along on-going geopolitical tension.

Currencies

Sellers of EUR/USD are on alert as the price remains below 1.0800, with local support seen around 1.0780. Meanwhile, GBP/USD is holding above crucial support at its 200-day moving average of 1.2588.

This week, the focus will be on a plethora of data related to the US jobs market, including the Job Openings and Labor Turnover Survey (JOLTS), weekly jobless claims, non-farm employment change, and the unemployment rate. These indicators will provide crucial insights into the health of the US labor market and could significantly impact market sentiment and trading activity.