Gold Price Around Key Support, Focus at FOMC, US NFP

• Gold remains bullish despite temporary drops.
• The fundamentals should drive the price during the week.
• USD’s rally could force the XAU/USD to drop toward the uptrend line.

The gold price dipped in the last hour, trading at $1,923. It seems undecided in the short term. Still, the fundamentals should drive the price during the week as the economic calendar is filled with high-impact events.

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Tomorrow, the US CB Consumer could jump from 108.3 to 109.2. This could be good for the greenback and force the yellow metal to drop.

Furthermore, Canadian GDP may register a 0.2% growth compared to the 0.1% growth in the previous reporting period. New Zealand Unemployment Rate is expected to remain steady at 3.3%, while Unemployment Change could report a 0.3% growth. These high-impact events could move the XAU/USD in the next trading session.

The FOMC, JOLTS Job Openings, ISM Manufacturing PMI, and ADP Non-Farm Employment Change could shake the markets on Wednesday. The Fed is expected to increase the Federal Funds Rate from 4.50% to 4.75%.

So, only a 25-bps hike is expected after the US reported lower inflation in the last months. On Thursday, the ECB and the BOE could be decisive as the central banks should deliver a 50-bps hike.

Also, the US Non-Farm Employment Change, Unemployment Rate, ISM Services PMI, and the Average Hourly Earnings should bring sharp movements on Friday in the short term.

Gold price technical analysis: Retesting the Buying zone

From the technical point of view, the rate continues to challenge the $1,919 – 22 area. The price registered only false breakdowns with great separation below these downside obstacles signaling strong buyers.

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Still, the weekly pivot point of $1,929, the descending pitchfork’s upper median line (UML), and the $1,934 represent resistance levels. USD’s depreciation should help the XAU/USD to come back higher.

Only USD’s strong growth versus its rivals should force the yellow metal to drop towards the uptrend line. Technically, taking out the immediate resistance levels should announce an upwards movement.

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