Gold Price News and Forecast: XAU/USD consolidates ahead of key week, bid following poor NFP outcome
|Gold Technical Analysis: 14-day-old rising trendline questions latest weakness
Gold drops to $1556 during early Monday. In doing so, the yellow metal negates the previous day’s bounce off the near-term key support line. As a result, sellers will look for the break of rising trend line since December 24, at $1,548 now, for fresh entry targeting 50% Fibonacci retracement of the bullion’s rise from December 18 to January 08, around $1,540.
During the quote’s declines past-$1,540, a confluence of 2019-end high as well as 61.8% Fibonacci retracement will challenge the Bears around $1,525.
Gold consolidates ahead of key week, bid following poor NFP outcome
Gold is consolidating around $1,558/61 at the start of the week following a slight pick up from the 200-hour moving average after US Nonfarm Payrolls disappointed on Friday.
On Friday, the US December non-farm payrolls rose 145k versus market expectations of 160k and the Nov gain was pared back to 256k from 266k. Moreover, the average hourly earnings were a disappointment at 2.9% yoy (est. 3.1% yoy) and there was a very mild lowering in the average workweek to 34.3 hours. This knocked the dollar off its perch and subsequently drove a bid into gold.
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