Gold Price Forecast: XAU/USD approaches weekly low at 2,621

XAU/USD Current price: $2,635.41

• Tepid United States employment-related data hit the US Dollar ahead of the NFP release.
• Wall Street is under pressure but not far below record highs.
• XAU/USD trades with a soft tone in the $2,630 region, could well reach fresh weekly lows.

Spot Gold kept trading uneventfully around the $2,650 mark throughout the first half of the day, with limited action across financial boards. The US Dollar (USD) was under pressure after the United States (US) released tepid employment-related data ahead of the release of the November Nonfarm Payrolls (NFP) report on Friday.

Initial Jobless Claims for the week ending November 29 rose to 224K, above the215K from the previous week and above the market’s expectations. Additionally, the US reported that US-based employers announced 57,727 cuts in November, a 3.8% increase from the 55,597 cuts announced one month prior, according to the Challenger Job Cuts report.

Nevertheless, the USD trimmed part of its losses and surged against Gold amid the poor performance of Wall Street. Following a mixed close among Asian and European indexes, US ones came under selling pressure right after the opening, suggesting a cautious mood.

XAU/USD short-term technical outlook

XAU/USD nears its weekly low posted on Monday at $2,621.77, and technical readings in the daily chart suggest the pair may extend its slide, albeit a break below such a low is needed. Gold is pressuring a bearish 20 Simple Moving Average (SMA), the latter at around $2,630, while the 100 SMA turns flat at around $2,580, reflecting receding buying interest. At the same time, technical indicators turned south, although the Momentum indicator holds within positive levels while the Relative Strength Index (RSI) indicator stands at neutral levels, suggesting a limited bearish potential.

In the near term, and according to the 4-hour chart, XAU/USD is neutral-to-bearish. The pair pressures a flat 100 SMA after breaking below an also directionless 20 SMA. Technical indicators aim lower with uneven strength but gain ground below their midlines. A bearish breakout is on the cards, although it may wait until after the release of the US NFP report.

Support levels: 2,621.77 2,608.40 2,689.10

Resistance levels: 2,633.15 2,650.10 2,666.25