Gold Price Forecast: XAU/USD tumbles to near $1,900 as US labor market conditions tighten

Gold price has faced immense selling pressure as US Employment conditions have tightened further.
The US labor market has been flooded with fresh 497K fresh talent in June, higher than the expectations of 228K and the former release of 278K.
S&P is expected to open on a bearish note as investors have turned extremely cautious ahead of the quarterly reason season.

Sagar Dua FXStreet

Gold price (XAU/USD) has tumbled to near the round-level support of $1,900.00 in the early New York session. The precious metal faced an intense sell-off as the labor market conditions in the United States tightened significantly.

The US Automatic Data Processing (ADP) agency has reported that payroll figures doubled in June vs. expectations. In June, the US labor market has been flooded with fresh 497K fresh talent, higher than the expectations of 228K and the former release of 278K.

Contrary to the US ADP Employment report, the number of individuals filing for initial jobless claims has jumped to 248K for the week ending June 30 vs. expectations of 245K and the former release of 236K.

Meanwhile, S&P is expected to open on a bearish note as investors have turned extremely cautious ahead of quarterly reason season and tight labor market conditions. The higher addition of Employment numbers is going to infuse confidence among Federal Reserve (Fed) policymakers for raising interest rates further.

The US Dollar Index (DXY) has rebounded after dropping to near 103.00 as hopes of further interest rate hikes from the Fed have solidified. The yields offered on 10-year US Treasury bonds have jumped to near 4.04%.

Gold technical analysis

Gold price has faced severe selling pressure while attempting to surpass the 100-period Exponential Moving Average (EMA) plotted around $1,929.00. The precious metal failed to sustain above the downward-sloping trendline plotted from May 03 high at $2,079.76.

The Relative Strength Index (RSI) (14) is oscillating in the 40.00-60.00. Bearish momentum would trigger if it drops below 60.00.

Gold four-hour chart

XAU/USD

Overview
Today last price	1911.85
Today Daily Change	-3.5
Today Daily Change %	-0.19
Today daily open	1915.41

Trends
Daily SMA20	1933.75
Daily SMA50	1964.83
Daily SMA100	1946.38
Daily SMA200	1863.76

Levels
Previous Daily High	1935.09
Previous Daily Low	1914.84
Previous Weekly High	1933.39
Previous Weekly Low	1893.01
Previous Monthly High	1983.5
Previous Monthly Low	1893.01
Daily Fibonacci 38.2%	1922.58
Daily Fibonacci 61.8%	1927.35
Daily Pivot Point S1	1908.47
Daily Pivot Point S2	1901.53
Daily Pivot Point S3	1888.22
Daily Pivot Point R1	1928.72
Daily Pivot Point R2	1942.03
Daily Pivot Point R3	1948.97

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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