XAU/USD continues its subdued performance around $1,850, US NFP in focus – Crypto News – Crypto News
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XAU/USD slumps below $1780, though clings to the 50-DMA XAU/USD slumps below $1780, though clings to the 50-DMA

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XAU/USD continues its subdued performance around $1,850, US NFP in focus – Crypto News

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3 years ago

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  • Gold price is displaying a sideways profile on a broader note ahead of US Employment data.
  • As per FOMC minutes, no Fed policymaker has advocated for cutting rates in CY2023.
  • A sheer drop in US NFP and a higher unemployment rate could trigger recession fears.

Golden price (XAU/USD) has failed to capitalize on a firmer rally to near $1,860.00 and has corrected gradually to near $1,850.00 in the early European session. The precious metal is likely to continue its lackluster performance until the release of the United States Nonfarm Payrolls (NFP) data.

The risk profile is improving again as S&P500 futures have recovered a majority of losses recorded in the Asian session. Contrary to this, the 10-year US Treasury yield has climbed above 3.72%, portraying ambiguity in market sentiment. The US Dollar Index (DXY) is aiming to overcome the immediate resistance of 140.00.

After the release of the Federal Open Market Committee (FOMC) minutes, which has clarified that no Federal Reserve (Fed) policymaker has advocated for cutting interest rates in CY2023, the street is looking for United States employment data. Only a significant drop in the employment addition numbers and an increase in the unemployment rate could force the Fed to look for policy stability or easing it to dodge recession fears.

gold technical analysis

On an hourly scale, Gold price is auctioned in a Symmetrical Triangle charts pattern that signals volatility contraction. It is highly likely that the release of the US Automatic Data Processing (ADP) Employment Change data will result in a volatility breakout.

Overlapping 20-period Exponential Moving Average (EMA) at $1,853.84 with the Gold price indicates rangebound action. The upward-sloping 50-EMA at $1,846.79 indicates that the short-term trend is still bullish.

Meanwhile, the Relative Strength Index (RSI) (14) has shifted into the 40.00-60.00 range from the bullish range of 60.00-80.00, which indicates a loss in the upside momentum.

gold hourly chart

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