Home Gold Price Finds Support at $2,010, Awaiting US NFP Data

Gold Price Finds Support at $2,010, Awaiting US NFP Data

  • XAU/USD remains bullish despite the last drop.
  • Only a new lower low activates a larger correction.
  • The US and Canadian data could drive the rate today.

The gold price retreated quickly on Thursday. However, the bias remains broadly bullish above the $2,000 level.

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The metal is trading at $2,016 at the time of writing, above the daily low of $2,008. XAU/USD dropped slightly in the short term as the USD appreciated the short term.

Gold climbed as high as 2,032 yesterday, registering a new high. The yellow metal turned to the downside even though the US ADP Non-Farm Employment Change and the ISM Services PMI were worse than expected yesterday. In addition, Final Services PMI and Trade Balance reported poor data as well.

Today, the fundamentals should move the markets. The Unemployment Claims are expected at 200K in the previous week, above 198K in the previous reporting period.

Furthermore, the Canadian Employment Change is expected at 10.2K in March, below 21.8K in February, while the Unemployment Rate is expected to grow from 5.0% to 5.1%.

Tomorrow, the NFP could be reported at 236K versus 311K in February. Average Hourly Earnings may report a 0.3% growth, while the Unemployment Rate could remain steady at 3.6%.

Gold Price Technical Analysis: Bullish Bias Intact

Gold price
Gold price hourly chart

Technically, the XAU/USD found resistance at the ascending pitchfork’s warning line (wl1), signaling that the leg higher could be over. It has retreated slightly but found support on the weekly R2 (2,010).

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The false breakdown below 2,010 announced a bullish momentum. The $2,021 and $2,024 are seen as immediate resistance levels. It remains to see how it reacts around these obstacles. False breakouts through the upside obstacles may result in a new sell-off.

Returning and stabilizing below the upper median line (uml) indicates a larger downside movement. Still, a broader correction should be activated only by a valid breakdown below 2,010. The median line (ml) stands as a downside target.

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Olimpiu Tuns

Olimpiu Tuns

Olimpiu Tuns graduated with a Master in Business Administration and is a seasoned Market Analyst / Trader / Trainer with 10 years of experience in the financial markets having expertise in Forex, Commodities, Index, Cryptocurrencies, and Stocks. He worked as a Market Analyst for three major brokerage companies, as a prop trader, and as a contributor/content creator for news portals and educational platforms.