Gold price is trying to extend Tuesday’s rebound, holding the higher ground above $1800 ahead of the critical US ADP jobs data and ISM Manufacturing PMI. As FXStreet’s Dhwani Mehta notes, the yellow metal is on the verge of a symmetrical triangle breakout on the 4H chart.
See – Gold Price Forecast: XAU/USD to race higher towards $1900 on NFP disappointment – OCBC
XAU/USD eyes acceptance above $1817 for further upside
“US ADP jobs data and ISM Manufacturing PMI will be closely eyed for fresh hints on the strength of the recovery while Friday’s Nonfarm Payrolls will be the main event risk. The Fed’s guidance on tapering hinges on Friday’s employment report.”
“Investors remain worried over the global economic recovery, especially amid looming covid risks and after the Chinese manufacturing activity slipped back into contraction last month, which is boding well for gold price.”
“A four-hour candlestick closing above the falling trendline resistance at $1817 will confirm the upside breakout, recalling the buyers for a test of the four-week highs of $1823. Gold bulls will then target the $1830 level, above which the pattern target measured at $1839 will come into play.”
“The upward-sloping 21-Simple Moving Average (SMA) at $1812 is likely to offer immediate support. If the selling pressure accelerates, then the rising trendline support at $1805 will be put at risk. A sustained move below the latter could validate a triangle breakdown, exposing the bullish 50-SMA at $1801.”
“The horizontal 200-SMA at $1793 will be the level to beat for gold bears.”
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