Last night, the September NFP report was released after being delayed for nearly two months when the U.S. government shut down. However, the NFP report did not move the market as much as investors had expected.
The reason is that although the data was not strong enough to indicate optimism, the Fed stated that this is not the time to cut interest rates because doing so could pose high risks to the U.S. financial system. Fed officials believe that labor data has improved and that there is no need for an early rate cut, as inflation still has not reached the desired level.
Therefore, despite multiple labor-market data releases last night, gold only moved sideways within a 40–50 range, showing that investors remain extremely cautious about the Fed’s hawkish remarks.
At this time, investors should be careful with their trades because when the market narrows its range, it often signals that a big move is coming.
Hùng still leans toward an upward trend, believing the Fed is only delaying rate cuts.
Technical analysis:
In the short term, look for BUY – SELL opportunities at the two zones 404x – 410x.
If a candle breaks out of this sideways range, follow the breakout direction.
Trí Hùng
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