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Gold Price Forecast: XAU/USD pulls back from its one-month high prior to the US NFP.

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Gold Price Forecast: XAU/USD pulls back from its one-month high prior to the US NFP.
  • Gold prices pull back on Friday, eroding some of the previous day’s gains to a one-month high.
  • A modest dollar strength turns out to be a key factor putting some pressure on the yellow metal.
  • Recession fears and geopolitical tensions should limit losses ahead of the US NFP report.

The Prayed It attracts some sellers on Friday and erodes some of the previous day’s strong move to the $1,795 region, or a one-month high. XAU/USD remains under pressure around the $1,785 zone during the first half of the European session and, for now, seems to have broken a two-day winning streak.

The US dollar regains some positive traction on the last day of the week, which is proving to be a key factor putting some downward pressure on the price of gold, denominated in dollars. The modest rally in the dollar could be attributed to some repositioning trading ahead of the release of monthly US jobs data, due later in the American session.

In the meantime, weakness in US bond markets is likely to act as a dollar headwind and lend support to the yellow metal, which does not yield Despite statements from several Fed officials this week, investors remain opposed to the idea of ​​a further rate hike at the September FOMC meeting. This, in turn, has been weighing on US bond yields.

Apart of this, growing fears of a recession, coupled with tensions between China and Taiwan due to the visit of the president of the US House of Representatives, Nancy Pelosi, to the island, they should limit the fall of gold, which is a safe haven. In fact, China carried out a missile attack on the Taiwan Strait on Thursday. The five missiles fell within Japan’s exclusive economic zone and heightened tensions in the region.

Investors might also refrain from opening aggressive positions and would prefer to wait for a fresh catalyst from the US NFP report. The data will play a key role in influencing short-term dollar price dynamics and provide a further directional boost to the dollar. Prayed. Therefore, it is prudent to wait for a strong continuation of selling before confirming that XAU/USD has topped.

gold technical levels

XAU/USD

Overview
last price today 1791.64
daily change today 0.44
Today’s daily variation in % 0.02
Daily opening today 1791.2
Trends
daily SMA20 1735.14
daily SMA50 1790.53
daily SMA100 1846.51
daily SMA200 1842.01
levels
Previous daily high 1794.97
Previous Daily Low 1763.3
Previous Weekly High 1768.04
Previous Weekly Low 1711.55
Previous Monthly High 1814.37
Previous Monthly Low 1680.91
Daily Fibonacci 38.2% 1782.87
Fibonacci 61.8% daily 1775.4
Daily Pivot Point S1 1771.34
Daily Pivot Point S2 1751.49
Daily Pivot Point S3 1739.67
Daily Pivot Point R1 1803.01
Daily Pivot Point R2 1814.83
Daily Pivot Point R3 1834.68

Source: Fx Street

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