InstaForex

July 3, 2021

GOLD Analysis - NFP Tonight Will Determine The Direction Of Gold Movement

 Gold trading is already starting to show a bullish pattern for early signals of the beginning of a bullish trend.


However, that is not enough to make investors feel comfortable while investors are now ready to await more aggressive price movements on the US NFP jobs report that will be published in the New York session soon.


Examining the price movement on the XAU/USD chart which measures the value of gold against the US dollar, the price has rebounded above the 1765.00 level after the latest low was hit this week around 1750.00.


Wednesday's price rally continued on Thursday's trading yesterday reaching a high of around 1782.00 before closing the New York session trading lower.


Despite the slow bullish pattern, the price above the Moving Average 50 (MA50) support level on the 1 -hour time frame on the XAU/USD chart still signals an uptrend.


The slow price movement since the Asian session this morning continued into the European session as investors took cautious steps ahead of the NFP report.



The continued bullish situation will see the resistance at 1800.00 be retested. Exceeding this level will give a positive signal of further rise in gold prices.


Analysts expect a price increase above that level to push back to the SBR (support become resistance) zone at 1850.00.


Meanwhile, if the price of gold again experiences a fall in value, the price movement below the level of 1765.00 is seen to be to the support level at 1745.00.


Next, further decline will lead to the focus zone at 1720.00-1700.00 which will be the price support zone