Gold (XAU/USD) extended the previous sell-off and finished Thursday in the red around $1931. Despite the overnight bounce in gold, the bulls remain unnerved ahead of the critical US Non-farm payrolls data due to be published later on Friday at 12:30 GMT, FXStreet’s Dhwani Mehta reports.
Key quotes
“The key US jobs report will offer fresh hints on the strength of the economic recovery, given the slowdown in jobs growth. The economy is expected to add 1400K jobs in August vs. +1763K prior while the jobless rate is seen ticking lower to 9.8% from July’s 10.2%. Any disappointment in the labor market report could prompt the return of the dollar bears and bode well for gold. In the meantime, the pre-NFP caution trading is likely to remain in play, with the dollar dynamics closely followed.”
“On the daily chart, the spot clings onto the critical triangle support at $1925 in the lead up to the US payrolls release. On the flip side, the downward-facing 21-daily Simple Moving Average (DMA) at $1955 could limit the advances.”
“The daily RSI trades neutral at the midline, suggesting a lack of clear directional bias.”
“The path of least resistance appears to the upside, in light of a bunch of healthy support levels in the major SMAs.”
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