On Friday, gold will trade in a range between $1,980 and $1,900 during the European session in anticipation of U.S. NFP data and information from the Middle East.
Wall Street is predicting that the NFP report will show the opening of 180,000 new jobs in October. At the same time, the unemployment rate will remain at 3.8%.
Gold is also getting support from expectations that the Federal Reserve (Fed) is nearing the end of its rate-hike cycle and will begin lowering interest rates in mid-2024.
CME Fedwatch data showed that more than 80% of traders are betting that monetary policy will remain unchanged by the end of the year.
However, geopolitical tensions in the Middle East and China's economic woes are also boosting demand for bullion.
China's Caixin PMI came in at 50.4 in October, slightly higher than September's 50.2 but below forecasts. Experts believe that China's service sector growth improved in October, but the pace of growth remained subdued as new business posted the weakest growth in ten months.
"The economy has shown signs of bottoming out, but the foundation for recovery is not solid," said Wang Zhe, Senior Economist at Caixin Insight Group.
However, it is worth noting that the positive momentum in the equity markets is keeping the bulls from making new bets and preventing gold from breaking through the psychological $2,000 level.
Currently, gold has gained 0.15% and is trading at $1,988.06.
The next resistance is at the $2,000 level. Fixing the price above this mark will allow us to test the level of $2,010, the breakthrough of which will open the way to $2,020.
In the case of the opposite scenario, the price of gold will find support at $1,980. Overcoming this level will reduce the price of the asset to $1,970.
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