- The Non-Farm Payrolls should bring sharp movements later.
- The bias remains bullish as long as it stays above the lower median line.
- After its massive drop, the rebound is natural.
The gold price is trading in the green at 1,834 at the time of writing. It has rebounded in the short term as the USD was in a corrective phase.
Still, the yellow metal maintains a bearish bias despite the current rebound. After its strong sell-off a temporary bounce back was natural.
Today, the fundamentals should take the lead and move the markets. Fundamentally, the price of gold remains bullish in the short term as the US Unemployment Claims came in at 211K in the last week versus the 195K expected and compared to the 190K in the previous reporting period.
Later, the Non-Farm Employment Change could be reported at 224K versus 517K in January, Unemployment Rate is expected to remain at 3.4%, while the Average Hourly Earnings may announce a 0.3% growth.
These represent high-impact events and could really shake the markets. Better than expected US data should lift the USD and could force the yellow metal to drop again.
On the contrary, poor US economic figures should boost the XAU/USD which could approach and reach 1,850 psychological level.
Gold Price Technical Analysis: Rebound
Technically, the XAU/USD found strong demand right below the 61.8% retracement level and now it has turned the upside. Personally, I’ve drawn an ascending pitchfork, so as long as it stays above the lower median line (lml), the bias is bullish and XAU/USD could hit new highs.
It is almost to reach the weekly pivot point of 1,838. This stands as a static resistance. After failing to stay below the 61.8% retracement level, the price of gold could approach the 50% (1,843) level if the US data comes in worse than expected. An upside continuation could be invalidated if the rate drops and stabilizes below the lower median line (lml).
Technically, as long as it stays within the ascending pitchfork’s body, Gold could try to approach and reach the median line (ml).
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