- Gold bulls are meeting daily resistance that guards a break towards $1,860.
- Continued failures at $1,800 opens risk of a test of dynamic support.
Gold price ended lower on Friday but a touch away from the highs set on the day and for the week on a session that gave good two ways business on mixed sentiment following the release of US November employment data. XAU/USD closed below Thursday's bulls cycle highs and a few US dollars below $1,800oz.
Even though the Nonfarm Payrolls data showed that stronger-than-expected hiring reflected the tightness of the labour market, investors faded the US dollar as Fed officials spoke dovish on the outlook.
Analysts at TD Securities, noting that Gold prices have propelled into an upward trajectory toward $1,800/oz, they say this should see length increase again in the coming week. ''However, with inflation still a big problem, and strong wage and jobs data persisting, long position shedding may materialize again, should the Fed not be as dovish as currently expected on December 14th.''
Meanwhile, moving to the technicals, the price has stalled leaving a topping M-formation on the 4-hour chart in a broader bullish scenario:
Gold H4 chart
Gold daily chart
On the back side of the trend, the price is bullish as per the harmonic pattern while above the W-formation's lows near $1,730. Zooming in ...
There are prospects of a correction towards the neckline of the W-formation for the days ahead as illustrated above and below down on the hourly chart:
With the price potentially basing, for the meantime, in the $1,790s, a move into test into the $1,800s could draw in the sellers again for the opening sessions with move into the dynamic support that meets the daily 38.2% Fibonacci and a 50% mean reversion below that.
If the bulls were to commit, however, a break towards $1,860 will be on the cards as per the daily chart:
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
EUR/USD hovers around 1.0700 ahead of German IFO survey
EUR/USD is consolidating recovery gains at around 1.0700 in the European morning on Wednesday. The pair stays afloat amid strong Eurozone business activity data against cooling US manufacturing and services sectors. Germany's IFO survey is next in focus.
USD/JPY refreshes 34-year high, attacks 155.00 as intervention risks loom
USD/JPY is renewing a multi-decade high, closing in on 155.00. Traders turn cautious on heightened risks of Japan's FX intervention. Broad US Dollar rebound aids the upside in the major. US Durable Goods data are next on tap.
Gold price flat lines above $2,300 mark, looks to US macro data for fresh impetus
Gold price (XAU/USD) struggles to capitalize on the previous day's bounce from over a two-week low – levels just below the $2,300 mark – and oscillates in a narrow range heading into the European session on Wednesday.
Worldcoin looks set for comeback despite Nvidia’s 22% crash Premium
Worldcoin (WLD) price is in a better position than last week's and shows signs of a potential comeback. This development occurs amid the sharp decline in the valuation of the popular GPU manufacturer Nvidia.
Three fundamentals for the week: US GDP, BoJ and the Fed's favorite inflation gauge stand out Premium
While it is hard to predict when geopolitical news erupts, the level of tension is lower – allowing for key data to have its say. This week's US figures are set to shape the Federal Reserve's decision next week – and the Bank of Japan may struggle to halt the Yen's deterioration.