US Employment Market Data Unveiled!

November has marked a significant downturn for gold prices,witnessing a decline of 3%.This drop is the largest monthly fall since September 2023.As we observe the current trends in the European market,gold appears to be stabilizing around $2635.Last week was quite encouraging for the stock market,with the Dow Jones rising by 1.39%,the S&P 500 adding 1.06%,and the Nasdaq gaining 1.13%.November alone saw impressive increases: the Dow up by 7.54%,the S&P 500 up by 5.73%,and the Nasdaq up by 6.21%.Looking ahead,this week,the U.S.Federal Reserve is poised to receive a series of crucial employment market data that may heavily influence their upcoming decisions.The first important data expected this Tuesday includes the Job Openings and Labor Turnover Survey (JOLTS),which should provide additional insights into the employment landscape.Following this,on Friday,the U.S.employment report for November will be released,which is expected to play a critical role in the Federal Open Market Committee (FOMC) meeting scheduled for December 17-18.This report promises to correct distortions from October's data,which were influenced by factors such as hurricanes and strikes.In October,non-farm employment saw a meager increase of 12,000 jobs,with the private sector losing 28,000 positions due to the impacts of Hurricanes Helene and Milton,along with worker strikes at Boeing.According to a survey by Bloomberg,forecasts suggest that November's new job additions could hit 195,000,a stark contrast to the previous figure of only 12,000.Additionally,the unemployment rate is expected to rise slightly to 4.2% from 4.1%,with average hourly earnings anticipated to grow by 3.9% year-on-year,down from a 4% growth,and month-on-month growth expected to slow from 0.4% to 0.3%.Notably,ahead of the employment report,Federal Reserve Chairman Jerome Powell is set to deliver remarks that may provide crucial policy signals,possibly allowing the market to adjust to the non-farm data in advance.Market participants are currently cautious; considerations surrounding the transmission of several policy propositions may exacerbate inflation concerns,leading analysts to believe that U.S.inflation levels may not decrease smoothly to the Fed's target of 2%.Instead,they fear a substantial surge could be on the horizon next year.In the meantime,developments in monetary policies from central banks in Europe and Japan remain critically observed by the markets.Traders have begun to boost their expectations for European Central Bank (ECB) interest rate cuts,with JP Morgan now moving its forecast for a 50 basis point cut from January of next year up to December.Japan's central bank could very well become another “powder keg” in the global marketplace.Early last Saturday morning,the Governor of the Bank of Japan,Kazuo Ueda,unexpectedly commented,signaling potential interest rate hikes.Governor Ueda suggested that as inflation and economic trends align with the central bank's forecasts,an interest rate increase might be approaching.Notably,ahead of the Bank of Japan's upcoming rate meeting on December 18-19,bond issuers have visibly intensified their borrowing plans,likely aiming to secure funds at a lower cost before rates go up.So,what could the implications of a rate hike from the Bank of Japan be for the global market?Analysts suggest that while Japan's economy may show improving momentum,with the backdrop of Fed rate cuts,the strengthening of the yen could be on the horizon.As the trend of yen appreciation establishes itself,the attractiveness of the yen carry trade may diminish,indicating a shift in global liquidity dynamics reliant on the U.S.dollar and other currencies.Gold Market Analysis for December 2From a technical standpoint,we currently find ourselves in a critical state.After failing to rebound at the weekly level,we are witnessing the emergence of a death cross,suggesting the potential for a weekly-level correction.Should a weekly adjustment occur,the monthly price may need to breach the 5-day moving average support.Observing the movements on a monthly timeline,the support at the 5-day moving average currently appears solid; however,due to the dynamics at play,we cannot rule out the possibility of a subsequent dip below the 5-day average after a brief rebound.The developments at the weekly level are significant,meaning that a substantial drop this December should not be taken lightly.From a daily perspective,a straight drop from current levels may be steep,indicating the need for further consolidation.In the 4-hour time frame,we can note signs of the short-term moving averages tilting downwards,exerting overall pressure; hence,a rebound after a slight decline remains plausible,with resistance encountered at the 5 and 10-day moving averages on the 4-hour chart.At this pivotal juncture,either significant downward movement will require time to materialize,or any upward momentum is anticipated to develop within the next few trading days.In terms of trading strategies,maintaining short positions around $2600 in line with the 4-hour moving averages of 5 and 10 remains a viable approach.