Gold price continues to enjoy good two-way price movements while holding at the higher end of this week’s trading range. In the view of FXStreet’s Haresh Menghani, XAU/USD is going nowhere as investors seem reluctant ahead of Friday’s release of the US monthly jobs report.
See – Gold Price Forecast: XAU/USD to see further gains above the $1835 zone – Commerzbank
Dovish Fed expectations continue to act as a tailwind for XAU/USD
“The closely-watched NFP report might provide fresh clues on when the Fed could begin rolling back its massive pandemic-era stimulus. This, in turn, will play a key role in determining the next leg of a directional move for the non-yielding yellow metal.”
“It is prudent to wait for a sustained move beyond the weekly trading range hurdle, around the $1,823 area, before positioning for any further appreciating move. The momentum could then lift XAU/USD towards a key barrier near the $1,832-34 region, which if cleared decisively will reaffirm the bullish breakout and pave the way for additional gains. Gold might then accelerate the momentum towards the next relevant resistance, around the $1,853-55 zone.”
“The weekly swing lows, around the $1,800 figure, now seems to protect the immediate downside. A sustained break below might prompt some technical selling and drag XAU/USD back towards the $1,778-74 zone. Some follow-through weakness will shift the bias in favour of bearish traders and expose the $1,762 support zone, which is followed by the $1,751-50 region. The downward trajectory could further get extended towards the $1,730 area en-route the $1,700 mark and multi-month swing lows, around the $1,687-86 region.”
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