Gold Price Analysis: US NFP to be a key decider as quest for $1800 continues
Gold licks wounds following Wednesday’s dramatic $35 fall from eight-year highs of $1789.28. Solid US macro data and coronavirus vaccine hopes weighed on the safe-haven. Will the US NFP report revive the bullish interest in gold?
The Technical Confluences Indicator shows that a cluster of support levels are seen around $1765, which could continue to keep the buyers hopeful. That demand zone is the confluence of the Fibonacci 38.2% one-week, SMA 200 on one-hour and Fibonacci 23.6% one-day.
These are the times that call for gold
As third quarter trading kicks off following a tumultuous first half of the year, investors are hoping for an auspicious July.
Both stocks and precious metals posted impressive advances in the second quarter. The SP 500 finished the April-June period with a gain of nearly 20%, its best quarterly performance since 1998. The Dow Jones Industrials, meanwhile, posted its best quarter since 1987.
It’s worth noting that in 1998 – and more famously in 1987 – the stock market also suffered a sharp 20%+ decline during the second half of the year.
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