- Gold rebounds after approaching the floor of the last two years.
- Expectation placed on the US employment data.
The Prayed is rising on the preview of the US employment report and ends a negative streak. He’s having the best day in over a week. XAUUSD returned above $1,700 after trading at $1,687, a one-month low.
The yellow metal rose to $1707, the daily maximum and trades around $1705. It has been moving with a bullish bias since the start of the day, supported by a dollar correction and stable Treasury yields.
Traders are awaiting US employment data for August due to be released at 12:30 GMT which may generate high volatility. The market consensus is for a 300,000 increase in employment. The latest data from the US was better than expected which contributed to the drop in gold in the previous sessions.
Gold’s advance on Friday comes from close to a long-term support zone at $1,675 (2021 and 2022 lows). Should it return below $1,700, there could be a retest at this level, which has the potential to trigger a medium-term bounce, or sharp acceleration to the downside.
Technical levels
Source: Fx Street
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