Gold Price Analysis: Gold to Hover Around $1,900 Awating NFP

Gold Price Analysis: Gold price has recaptured the $1,900 levels and seems to be waiting for additional dollar moves. According to FXStreet’s Analyst Haresh Menghani, the range play is likely to be extended ahead of NFP on Friday.

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“The underlying bullish sentiment in the equity markets seemed to be the only factor weighing on the safe-haven gold. Investors also seemed reluctant to place any aggressive bets, rather preferring to wait on the sidelines ahead of Friday’s release of the US Non-Farm Payroll figures.”

“A slew of important US macro data will be looked upon for some impetus later during the early North American session. Thursday’s US economic docket highlights the releases of the ADP report on private-sector employment, the usual Initial Weekly Jobless Claims and the ISM Services PMI. This, along with the US bond yields, might influence the USD price dynamics. Traders will further take cues from the broader market risk sentiment for meaningful opportunities.”

“Gold has been oscillating in a familiar trading band around the $1,900 mark over the past one week or so. The range-bound price action constitutes the formation of a rectangle on short-term charts, marking a pause in the trend. Given the recent strong positive move, this might still be categorized as a bullish continuation pattern.”

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“It will still be prudent to wait for a sustained strength beyond multi-month tops, around the $1,913-15 region before positioning for any further appreciating move. The yellow metal might then aim to surpass an intermediate resistance near the $1,925 level and accelerate the momentum further towards the $1,950 level.”

“Any meaningful slide below the $1,900-$1,895 region is likely to find decent support near the $1,882 region. This is followed by the $1,870-68 horizontal support, which if broken decisively might prompt some long-unwinding trade. The metal might then turn vulnerable and accelerate the fall further towards the $1,852-50 support zone. The corrective pullback, however, might still be seen as a buying opportunity.”

(From FXStreet)

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