Gold Price Forecast: XAU/USD remains shy of $1,800, DXY advances ahead of US NFP

Gold price has failed to recapture the psychological resistance of $1,800.00.
The DXY is gaining strength despite the downbeat expectations for the US NFP.
JP Morgan has slashed the consensus for the US NFP to 200k.

Sagar Dua FXStreet

Gold price (XAU/USD) has slipped below $1,790.00 after failing to punch the psychological resistance of $1,800.00 in the Asian session. The precious metal formed a short-lived double top and a slight correction is highly expected by the market participants.

Meanwhile, the US dollar index (DXY) has displayed a stellar performance after the open despite the downbeat estimates for the US labor market data. After the consensus of 250k job addition in the month of July, economists at JP Morgan predict the US Nonfarm Payrolls (NFP) to come in weaker at 200K in July’s labor market report. In the month of June, the US economy added 372k jobs in the labor market. A continuous slash in job creation data is advocating severe pressure on the labor market. However, the Unemployment rate will remain stable at 3.6%.

Rising interest rates and their multiplier effects have triggered downside risks in the labor market activities. The corporate players are unable to invest unhesitatingly due to costly dollars. Therefore, lower investment opportunities are unable to accelerate the employment generation process.

Gold technical analysis

On a four-hour scale, the gold price has faced barricades while attempting a break of the Rising Channel on the upside. The upper portion of the above-mentioned chart pattern is plotted from July 22 high at $1,739.37 while the lower portion is placed from July 21 low at $1,681.87.

The precious metal is confidently established above the 50-and 200-period Exponential Moving Averages (EMAs) at $1,759.62 and $1,765.06 respectively, which adds to the upside filters.

Also, the Relative Strength Index (RSI) (14) is holding itself in the bullish range of 60.00-80.00, which indicates that the bullish momentum is still intact.

Gold four-hour chart

XAU/USD

Overview
Today last price	1791.64
Today Daily Change	0.44
Today Daily Change %	0.02
Today daily open	1791.2

Trends
Daily SMA20	1735.14
Daily SMA50	1790.53
Daily SMA100	1846.51
Daily SMA200	1842.01

Levels
Previous Daily High	1794.97
Previous Daily Low	1763.3
Previous Weekly High	1768.04
Previous Weekly Low	1711.55
Previous Monthly High	1814.37
Previous Monthly Low	1680.91
Daily Fibonacci 38.2%	1782.87
Daily Fibonacci 61.8%	1775.4
Daily Pivot Point S1	1771.34
Daily Pivot Point S2	1751.49
Daily Pivot Point S3	1739.67
Daily Pivot Point R1	1803.01
Daily Pivot Point R2	1814.83
Daily Pivot Point R3	1834.68

Author

Sagar Dua

FXStreet

Sagar Dua is associated with the financial markets from his college days. Along with pursuing post-graduation in Commerce in 2014, he started his markets training with chart analysis.

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