Gold Price Forecast: XAU/USD surges to 2-day highs above $1710 after employment report

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  • US employment report for August is not far from expectations.
  • The dollar loses strength due to a decline in Treasury bond yields.
  • Gold adds further gains after the data, and extends rebound from critical support.

Gold rose as high as $1,715 on US jobs data, hitting a two-day high. It then pulled back and is trading around $1709. The dollar was left weak, with a limited fall, after the figures.

After the NFP, the calm is cut

The US jobs report showed mixed numbers. Nonfarm payrolls rose by 315,000 above the 300,000 expected. The unemployment rate went from 3.5% to 3.7%, although accompanying an increase in the labor participation rate. Volatility in financial markets jumped after the US data.

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Treasury yields are falling which supports gold’s rally on Friday. Stocks in the US rise supporting the demand for raw materials.

The Prayed advances on Friday and cuts weekly losses. On Thursday the price of the yellow metal hit a one-month low of $1,688, before starting the rebound. XAUUSD’s gain on Friday is the biggest since the beginning of the month.

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The short-term trend remains down, although gold is bouncing from close to strong long-term support at the $1,675 level, where the 2021 and 2021 lows are.

Technical levels

XAU/USD

Panorama
Last Price Today 1710.48
Today’s Daily Change 12.98
Today’s Daily Change % 0.76
Today’s Daily Opening 1697.5
Trends
20 Daily SMA 1758.43
50 Daily SMA 1756.56
100 Daily SMA 1810.4
200 Daily SMA 1835.59
levels
Previous Daily High 1711.49
Previous Daily Minimum 1688.92
Previous Maximum Weekly 1765.51
Previous Weekly Minimum 1727.87
Monthly Prior Maximum 1807.93
Previous Monthly Minimum 1709.68
Daily Fibonacci 38.2% 1697.54
Daily Fibonacci 61.8% 1702.87
Daily Pivot Point S1 1687.12
Daily Pivot Point S2 1676.73
Daily Pivot Point S3 1664.55
Daily Pivot Point R1 1709.69
Daily Pivot Point R2 1721.87
Daily Pivot Point R3 1732.26

Source: Fx Street

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