The gold market is hovering around $1,919 & 1,905 today
The Dollar Index is seen to be holding on at $102.55 ahead of the release of NFP data later tonight
Will gold be able to defend the $1,900 support level?
Gold prices are struggling to recover as they held above $1,900 on the last trading day of the week.
Traders are excitedly awaiting the United States (US) Nonfarm Payrolls (NFP) data which is very important to determine the new direction for gold prices.
The NFP data determines the price of gold
Nonfarm Payrolls and Average Earnings data played an important role for gold prices, which continued to decline for three consecutive days.
Economists expect the US economy to add 225,000 jobs in June compared to the 339,000 growth reported in May.
Average hourly wage growth was seen to rise 4.2% in the reported period, at a slightly slower pace than the 4.3% increase in May.
The below-expected US jobs and wage inflation data has the potential to surprise and lead to a sudden sell-off in the US Dollar and US Treasury bond yields.
In this situation, the price of gold could benefit and make a recovery near the $1,953 barrier.
On the other hand, if the US labor market report surprises, especially after the upbeat ADP report, gold prices could continue the downtrend towards $1,875, as a tighter US labor market will allow the Fed to stay on track for interest rate hikes.
Based on the price movement in the Daily timeframe, the price of gold is seen to be difficult to break through the price level of $1,919.
From a "seller" perspective, the focus price is seen to be $1,930 which will be the focus of gold traders if tonight's data provides a positive impact on the US Dollar.
However, this week's focus level of $1,919 will be a major obstacle.
From the "buyer" perspective, the focus price is seen at $1,905 as the focus of gold traders.
