XAUUSD & BRN outlook ahead of US jobs report and US elections

• Gold pulls back from $2800 threshold ahead of US jobs report
   
• US jobs data and election outcome to impact gold's direction
   
• Brent crude rebounds to mid-$70 range due to geopolitical tensions
   
• Global oil surplus expected to limit Brent price gains
   
• Market volatility expected ahead of key events

A correction in gold prices occurred after the metal nearly reached the key $2,800 threshold earlier this week.

The pullback appears to be driven by traders locking in profits ahead of significant events, including the upcoming US jobs report and presidential election.
 

Technical indicators also suggested that gold was due for a correction, given its overbought status.

If the US jobs data reveals a labour market that could accommodate further interest rate cuts by the Federal Reserve, gold may regain its upward momentum and approach the $2,800 level once again.

Additionally, the outcome of the US presidential election could lead to increased demand for safe-haven assets and inflation protection, potentially sustaining gold's upward trend, even if the Fed's ability to cut rates is limited.

In the oil market.
 

Brent crude has rebounded to the mid-$70 range, recovering some of this week's losses.

The resurgence of geopolitical tensions, sparked by reports of potential Iranian retaliation against Israel, has contributed to the price increase.
 

However, history suggests that these risk premiums are often short-lived, as long as the conflict does not disrupt regional oil supplies.

Despite current tensions, the expected global oil surplus in the coming year is likely to keep Brent prices in a downtrend, limiting potential gains in the near term.