Gold Price Forecast: XAU/USD remains on the defensive above $1,800, US NFP eyed

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  • Gold price remains under pressure near #1,820 on Friday.
  • US Initial Jobless Claims last week came in below the expectation.
  • Higher US Treasury yields exert some selling pressure on the gold price.
  • Gold traders will focus on the US employment data due later on Friday.

Gold price (XAU/USD) remains on the defensive around $1,820 after bouncing off the weekly low of $1,813 during the early Asian session on Friday. The precious metal struggles to gain as the Federal Reserve (Fed) is not expected to abandon its ‘higher-for-longer’ stance on interest rates. Market players await the highly-anticipated US Nonfarm Payrolls for more clarity about labor market conditions.

That being said, the higher US Treasury yields exert some selling pressure on non-yielding assets like Gold. Meanwhile, the US Dollar Index (DXY) declined to 106.40 after retreating from monthly highs. US Treasury yields also edges lower, with the 10-year Treasury yield dropping to 4.73%. While the YS 2-year stays at 5.02%.

On Thursday, the US Initial Jobless Claims for the week ending on September 30 improved to 207K from the previous reading of 205K, according to the US Department of Labor. This figure registered below the market expectation of 210K. Furthermore, the US Balance of Trade deficit was $58.3 billion, lower than the expected of $62.3 billion and the $64.7 billion recorded in July.

The US employment data on Friday will be in the spotlight. The Nonfarm Payrolls are expected to rise by 170K while the Unemployment Rate is estimated to decline to 3.7% from 3.8%. The softer figures could trigger the sell-off in the Greenback against its rivals and might act as a tailwind for XAU/USD.

Gold traders will monitor the US Average Hourly Earnings for September, Nonfarm Payrolls, and the Unemployment Rate. These events could trigger the volatility in the market. Traders will take cues from these events and find trading opportunities around the gold price.

 

XAU/USD

Overview
Today last price 1821.39
Today Daily Change 1.33
Today Daily Change % 0.07
Today daily open 1820.06
 
Trends
Daily SMA20 1891.77
Daily SMA50 1910.37
Daily SMA100 1928.67
Daily SMA200 1927.98
 
Levels
Previous Daily High 1829.26
Previous Daily Low 1813.07
Previous Weekly High 1927.27
Previous Weekly Low 1846.37
Previous Monthly High 1953.01
Previous Monthly Low 1846.37
Daily Fibonacci 38.2% 1819.25
Daily Fibonacci 61.8% 1823.08
Daily Pivot Point S1 1812.33
Daily Pivot Point S2 1804.61
Daily Pivot Point S3 1796.14
Daily Pivot Point R1 1828.52
Daily Pivot Point R2 1836.99
Daily Pivot Point R3 1844.71

 

 

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