- Gold price consolidates near monthly lows, not out of the woods yet.
- US dollar drops with yields as investors reposition ahead of US jobs report.
- XAU/USD faces a wall of strong resistance levels, downside remains favored.
Gold price is treading water near monthly lows, looking to extend the bearish streak seen so far this week. Investors refrain from placing any aggressive bets on the bright metal ahead of the all-important US employment data. In light of strong US Consumer Confidence data, encouraging jobs data could bolster the expectations of a 75 bps Fed rate hike in September. This could revive the US dollar rally, keeping the downtrend intact in the bullion. Additionally, the Eurozone inflation data could seal in an outsized ECB rate hike next week, exacerbating the pain in the non-interest-bearing gold. The US NFP data will hold the key ahead of the next inflation report.
Also read: Gold Price Forecast: Will US ADP deepen the pain for XAU/USD bulls?
Gold Price: Key levels to watch
The Technical Confluence Detector shows that the gold price is facing stiff resistance at $1,729, where the Fibonacci 38.2% one-day and the previous week’s low merge.
A sustained break above the latter will threaten the Fibonacci 38.2% one-month at $1,732. The next upside barrier is aligned at $1,736, the confluence of the Fibonacci 23.6% one-week and pivot point one-day R1.
Buying resurgence could propel XAU/USD towards powerful resistance around $1,742, the intersection of the SMA50 four-hour and Fibonacci 38.2% one-week.
Should sellers wake up from the slumber, the downside could be reopened towards the monthly lows of $1,720, below which the pivot point one-day S1 at $1,717 will be challenged.
The Fibonacci 23.6% one-month at $1,712 will be the line in the sand for XAU bulls before attacking the $1,700 psychological level.
Here is how it looks on the tool
About Technical Confluences Detector
The TCD (Technical Confluences Detector) is a tool to locate and point out those price levels where there is a congestion of indicators, moving averages, Fibonacci levels, Pivot Points, etc. If you are a short-term trader, you will find entry points for counter-trend strategies and hunt a few points at a time. If you are a medium-to-long-term trader, this tool will allow you to know in advance the price levels where a medium-to-long-term trend may stop and rest, where to unwind positions, or where to increase your position size.
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
AUD/USD extends rally as buyers’ eye 0.6700 ahead of Aussie’s job data
The Australian Dollar surged more than 1% against the US Dollar on Wednesday after data showed that consumer inflation moderated in April, with the underlying Consumer Price Index edging lower for the first time in six months. As Thursday’s Asian session begins, the AUD/USD trades around 0.6695.
USD/JPY trims losses below 154.50 following Japan’s GDP data
USD/JPY trims losses near 154.45 during the early Asian session on Thursday. The softer US CPI inflation data has exerted some selling pressure on the US Dollar. However, the major pair recovers modestly following the recent weaker-than-expected Japan’s Gross Domestic Product in the first quarter of 2024.
Gold rally continues with buyers eyeing $2,400 as inflation recedes
Gold price extended its uptrend for the second straight day on Wednesday and hit a three-week high of $2,390 after data revealed by the US Bureau of Labor Statistics showed inflation is ebbing, increasing the odds for a Federal Reserve rate cut in 2024.
Will CPI report showing inflation eased in April push BTC to $70K?
Bitcoin price jumped by 5% on Wednesday, seeing the American session outperform the Asian session for the first time in a while. Tailwinds sprouted fron US inflation release.
Dow Jones Industrial Average soars 350 points, sets new all-time high as rate cut hopes surge
The Dow Jones Industrial Average clipped into a fresh all-time high on Wednesday, gaining almost nine-tenths of a percent during the US market session after US Consumer Price Index inflation slipped further back.