07 August
Gold and silver market
Spot Gold prices rose on Friday as the U.S. jobs report came in slightly weaker than expected, leading to a decline in the dollar and Treasury yields, providing some relief to bullion during its worst week in six.
The Labor Department’s employment report revealed an increase of 187,000 jobs in nonfarm payrolls last month, falling short of economists’ forecast of 200,000 jobs.
According to the CME’s FedWatch Tool, there is now an 85% probability that the Fed will keep rates unchanged at its September 19-20 meeting, up from 78% before the data was released.
Gold Price bounced back from an upward-sloping support line since late November 2022, supported by an upswing in the Relative Strength Index (RSI) line at 14. However, the bearish signals from the Moving Average Convergence and Divergence (MACD) indicator, coupled with resistance at the 50-day moving average (DMA) hurdle near $1,945, posed a challenge for XAU/USD bulls.
Nevertheless, Gold Price seems prepared to extend its recent rebound beyond the immediate DMA hurdle of $1,945. Buyers face a challenge in overcoming a three-month-long downward-sloping resistance line around $1,960.
A daily closing above the $1,960 hurdle would enable Gold Price to rise towards the previous monthly high of around $1,987 and potentially target the psychological level of $2,000.
On the contrary, failure to sustain trading above the 50-DMA hurdle of $1,945 could lead XAU/USD back to the aforementioned support line around $1,933.
Subsequently, Gold sellers may encounter resistance around the $1,900 level before directing them towards the key support confluence of $1,895-93, which includes the 200-DMA and June’s low.
Overall, while Gold Price is likely to witness further recovery, the upside potential appears limited.
– Nitin kedia
