- XAU/USD weakened after NFP but then rebounded as equity prices trimmed gains.
- Price approached $1780 before losing strength; holds onto modest gains for the day.
Gold is trading at daily highs, near $1780 after rising $20 from the daily low. The metal dropped to $1757 after the release of the US employment report and then bounce sharply to the upside. The strength in gold improved over the last hour as it held near the top, even as equity prices recover from the last spike lower.
Jobs data from the US came in much better-than-expected, triggering a rally in Wall Street. The numbers showed an acceleration in the recovery although analysts warn that over the next months, June’s performance won’t be easy to repeat.
Technical outlook
Gold is testing the $1780 resistance area and a break higher would reinforce the bullish scenario. Above, at $1785 the next obstacle emerges and above then comes the multi-year high at $1789, before $1800.
The upside bias remains intact in XAU/USD but currently is facing difficulties approaching $1800. A break higher could trigger more gains and volatility.
On the flip side, a consolation below $1765 would alleviate the bullish pressure. And under $1755 a deeper correction seems likely.
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