Gold Price Forecast: On pause, but sellers outpace buyers
XAU/USD Current price: $1,756.63
- Gold prices have returned to pre-US Nonfarm Payrolls report levels.
- US macroeconomic data will likely take centre stage this week.
- XAU/USD is at risk of falling sharply, 1,748.05 is the immediate support level.
Traders overcame Friday’s US Nonfarm Payroll report, at least when it comes to gold. The bright metal is trading at pre-report levels in the 1,750/60 price zone, after peaking at 1,781.32, a two-week high. The week started in slow-motion, amid a semi-holiday in America, with US and Canadian markets seeing reduced activity, and a scarce macroeconomic calendar. Gold remains depressed as a modest optimism prevails.
Wall Street posts modest intraday gains, following and also dull European session, while the bond market is closed today. This week, the focus will be in the US as the country will publish the latest data on inflation, Retail Sales and Consumer Sentiment, which may bring back some hopes after the dismal employment report.
Gold price short-term technical outlook
XAU/USD offers a neutral-to-bearish stance in its daily chart, as it keeps meeting selling interest around a firmly bearish 20 SMA, with spikes beyond the indicator being quickly reverted. The Momentum indicator heads lower within neutral levels, while the RSI consolidates around 45, suggesting selling interest outpaces buyers. At the same time, the pair is finding buying interest around the 23.6% retracement of its latest slide at 1,748.05, the immediate support level.
In the near term, and according to the 4-hour chart, gold is neutral. XAU/USD hovers around directionless 20 and 100 SMAs, while technical indicators remain stuck to their midlines. The 200 SMA heads marginally lower far above the current level, converging with the 50% retracement of the mentioned decline.
Support levels: 1,748.05 1,735.26 1,721.60
Resistance levels: 1,764.35 1,777.75 1,787.30
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Author
Valeria Bednarik
FXStreet
Valeria Bednarik was born and lives in Buenos Aires, Argentina. Her passion for math and numbers pushed her into studying economics in her younger years.
