Gold under tremendous selling pressure ahead of US NFP
|Today is the most critical day for markets and traders. Today, we are going to get another update about the health of the US economy when the US NFP data will be released. There is no doubt that the stage is set for a strong US NFP reading. This is because we had a strong US ADP, ISAM manufacturing, and ISM Non-Manufacturing reading, and weekly Jobless Claims data also shows enormous strength.
We also need to keep in mind that there is a higher degree of disappointment because market players are hoping for strong reading, and if the report shows weak numbers, we are likely to see gigantic moves in the markets. This means that the Dow Jones, the S&P 500, and the Nasdaq, which are set to post their best weekly gains since November, will see a massive sell-off. It is also likely that we may see an enormous spike in the gold price, which has been under selling pressure more recently.
In terms of technical analysis, gold prices are trading below the 50, 100, and 200-day simple moving averages, and this means that bulls have lost control of the price. Having said this, for the past few days, we have experienced an intensive sell-off, which has pushed the RSI on the daily time frame towards its oversold region. This means that retracement is highly, and this could take place.
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