Oct 06, 2022
VOT Research Desk
With the US currency and rates weakening, the price of gold is once again on the rise.
In a more upbeat environment, investors examine mixed US data and Fed rate hike predictions.
In front of the US NFP, XAU/USD bulls continue to focus on the $1,735 resistance.
XAU/USD Analysis Report
The gold price is now experiencing renewed demand in Thursday’s trade, returning to three-week highs against the backdrop of a generally weak US dollar and subpar Treasury yield performance. After the US ISM Services Price Paid component fell more than anticipated in September, the markets are in a risk-on attitude, suggesting that investors are disregarding the effect of rising oil prices while praising chances for a less aggressive Fed. The US ADP employment figures, however, came in higher than expected, at 208K in the reported month, above estimates of 200K. Now, all eyes are on Friday’s announcement of US Nonfarm Payrolls, which might provide a new direction for the dollar and the yellow metal.
Monitor key levels for the price of gold
The SMA50 one-day and pivot point one-month R1 have converged around $1,724, according to the Technical Confluence Detector, and the gold price is aspiring to be accepted above these levels.
In order to launch a new rally towards the high of the previous month, $1,735, the pivot point one-day R1 at $1,730 needs to be cleared. The previous day’s high of $1,728 will test the bulls’ immediate upside. On the other hand, sellers will aim for the previous low four-hour at $1,715, below which bulls will find support at the Fibonacci 61.8% one-day at $1,718.
For XAU bears, it will be difficult to overcome the convergence of the Fibonacci 38.2% one-day and pivot point one-week R2 at $1,712.
