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Title: Gold Price Forecast: XAU/USD to edge lower on strong NFP

  • Writer: analysiswatch
    analysiswatch
  • Jan 7, 2022
  • 1 min read

Jan 07, 2022 2:32 AM ET


By: AnalysisWatch


Gold experienced weighty misfortunes on Thursday and shut underneath the $1,800 mark. On Friday, XAU/USD energized again towards $1,800, yet disadvantage hazards stay flawless as financial backers plan for the US work market report for December.


The United States is expected to add 400,000 jobs in December, up from 210,000 previously, with the participation rate possibly falling. Solid job growth should raise expectations for aggressive Fed rate hikes and pave the way for balance sheet reduction. Gold costs will doubtlessly be dependent upon a reestablished ascend in Treasury yields following the US occupations report, while the dollar will likewise ride the flood of monetary good faith.


A candlestick on the four-hour chart closing below the rising trend line at 1,789 will confirm the bearish continuation formation and require a retest of the support area at $1,785. The next significant cushion is seen at the December 16 bottom at $1,775. Below this level, new downside positions will emerge as gold sellers will then target the $1,750 demand zone.


A sustained break above the rising trendline resistance at $1,796 would lift the bearish flag formation and initiate a sharp rally towards the mildly bullish 100-SMA at $1,802. The negative 21-SMA at $1,806 will then, at that point, challenge the bullish responsibilities as XAU/USD attempts to expand the upturn towards the 50-SMA at $1,809. The week-by-week highs at $1,830 will be back on purchasers' radar if the 50-SMA separates.

 
 
 

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