- Low volatility after hours of sharp movements awaiting the employment report.
- Gold recovers after a drop to $ 1,854, faces resistance at $ 1,875.
The Gold has stabilized around $ 1,870 after hours of high volatility. To the sharp drop on Thursday, when the price went from being around $ 1910 to bottoming out at $ 1865; it was joined by the rapid decline in the Asian session on Friday to $ 1,854, the lowest level since May 19.
Both Thursday’s and Friday’s bounce encountered resistance in the $ 1,875 zone, which is the first barrier to the upside. Then it will follow 1885 $. Technical indicators have deteriorated after Thursday’s crash, and gold still looks vulnerable to further losses, with immediate support at $ 1,865 and below the $ 1,855 floor.
Despite what the technical indicators show, In the next few hours the path of gold may be determined by the reaction to the US employment data that will be released at 12:30 GMT. The market consensus is for an increase in non-farm payrolls of 650,000 and that the unemployment rate goes from 6.1% to 5.9%.
The data, in addition to affecting the dollar, is expected to have an impact on bond yields that also influences the XAU / USD. The 10-year rate has been moving unchanged for hours at around 1.62%. A rise in yields would be a bearish factor for gold, while a fall would boost it.
Technical levels
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