Gold Targets $2400 as NFP looms. Brent Stable.

• Gold broke above 50-day MA, signaling bullish trend
   
• US jobs report today impacts gold's direction
   
• Gold eyes $2400 with weak US labor signals
   
• Brent near 2-month high on supply concerns
   
• Brent gains vulnerable to strong US jobs data

GOLD
 

Gold has broken above its 50-day moving average (MA), a key technical indicator that had capped prices since early June, though remains in the sideways pattern since April.
 

Bullion’s presence above its 50-day MA could be determined by today’s incoming US jobs report.

Gold is set to move closer to $2400 upon further signs of softening in the US labour market, which in turn ramps up hopes for Fed rate cuts later this year.
 

However, stronger-than-expected jobs data may force zero-yielding gold back below its 50-day MA.

BRENT
 

Brent is holding around a fresh 2-month high, with oil bulls emboldened by the threat of Hurricane Beryl amplifying US supply risks.



The pullback in the US dollar, along with the biggest drop in US crude stockpiles in almost a year, have also added to the upside impetus for oil benchmarks this week.

Oil prices may yet move higher as long as the seasonal rise in US summertime demand can stay true to expectations.

A rebound for the US dollar in reaction to a stronger-than-expected US jobs report could also force oil prices to pare some of this week’s gains.
 

However, a weaker-than-expected US jobs report that prompts further declines in the greenback may bolster Brent closer towards $90/bbl.