XAU/USD outlook: Gold falls almost $100 on upbeat US payrolls data

Slobodan Drvenica Windsor Brokers

XAU/USD

Gold fell almost $100 on Friday following surprise surge in US nonfarm payrolls that eased worries of US policymakers and boosted expectations of rate hike on Sep 16 policy meeting.

Upbeat US labor data pushed the metal’s price down to over 2.5% and signals that gold would register the second consecutive weekly closing in red.

The fresh drop also weakened technical picture on daily chart as 14-d momentum is pressuring the centreline and south-heading RSI is entering neutrality zone (50), although MAs remain in mixed setup (30/100 bull-cross vs 10/200 death-cross) signaling that further action to the downside is still needed to verify developing negative signals.

Close below previous significant supports at $4400 zone will be minimum requirement, with extension below daily Kijun-sen ($4358) to strengthen negative structure and expose $4319 (50% retracement of $3942/$4697) which contained several attacks so far, and $4268 (daily cloud top) in extension.

Repeated close below daily Tenkan-sen ($4489) is needed to keep near-term bias with bears.

Markets shift focus to US Aug inflation data (due next Friday) which will provide significant information to the central bank ahead of policy meeting.

Res: 4489; 4519; 4533; 4575.
Sup: 4400; 4358; 4319; 4268.

Author

Slobodan Drvenica

Windsor Brokers

Industry veteran with over 22 years’ experience, Slobodan Drvenica joined Windsor Brokers in 1995 when he was an active trader for more than 10 years, managing the trading desk and own account departments.

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