GOLD Analysis – What is the Range of Gold's Movement Ahead of the NFP?

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 The rise in gold prices continued to trade on Wednesday overnight, but the momentum of price increases was seen as still weak in the atmosphere of market vigilance ahead of the United States (US) NFP jobs report at the end of the week.


Examining the XAU/USD price chart which measures the value of gold versus the US dollar, after the price hike bounced from the 1900.00 support zone on Tuesday, the increase continued on Wednesday night's trading reaching a level of around 1938.00.


The price increase which was limited to this high failed to continue the increase to the target level of 1950.00 before the original price decline continued in today's trading.


However, the decline in prices in the Asian session was seen successfully supported by the level of support in the Moving Average 50 (MA50) on the 1-hour time frame before prices increased slightly entering the early European session for a sign to reconnect with previous gains.


If the bullish run continues again, the support level at 1950.00 will still be the target for price testing before any higher upside that manages to break the barrier will move towards the SBR zone (support becomes resistance) in 1970.00.



Next, the target level of support is at 2000.00 for the price to continue moving in a clearer bullish trend.


However, if the price plunges back to its original potential, it is likely influenced by the market reaction to the NFP report, the price will continue to support 1900.00 which has not yet been broken.


The drop in price breaking the support zone will eventually move to a level around 1870.00 which is in the lower SBR zone.