Gold finished the week with small gains a little below $1,780 but failed to clear key resistance. In the view of FXStreet’s Eren Sengezer, sellers look to retain control following the uninspiring rebound.
Key technical levels for gold remain intact
“The ISM Manufacturing PMI report will be featured in the US economic docket on Thursday. Investors will keep a close eye on the Prices Paid Index for fresh clues on the inflation outlook rather than the headline PMI reading.”
“Ahead of the weekend, the US Bureau of Labor Statistics will release the June jobs report. The market consensus points to a 600,000 increase in Nonfarm Payrolls (NFP). The Unemployment Rate is seen edging lower to 5.7% from 5.8%. A stronger-than-expected NFP reading could provide a boost to the USD and weigh on gold as it would reaffirm the FOMC’s hawkish tilt in the policy outlook.”
“Key resistance seems to have formed in the $1,795/$1,800 (psychological level, 100-day SMA, Fibonacci 50% retracement of April-June uptrend) region. A daily close above that area could attract buyers and help gold extend its rebound toward $1,825 (Fibonacci 38.2% retracement) and $1,835 (200-day SMA, 50-day SMA).”
“$1,770 (Fibonacci 61.8% retracement) aligns as key support and bears could see a decline below that level as another selling opportunity toward $1,756 (April 29 low, static level) and $1,745 (static level).”
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