Market news
02.12.2022, 06:14

Gold Price Forecast: XAU/USD upside appears more compelling ahead of US NFP – Confluence Detector

  • Gold price consolidates recent gains around four-month high after crossing the key resistances.
  • Cautious mood, US Dollar rebound allows XAU/USD bulls to take a breather.
  • Downbeat expectations from US employment report, dovish bias for Fed favor Gold bulls.
  • Sustained trading beyond $1,796, $1,787 keeps buyers hopeful.

Gold price (XAU/USD) settles around a four-month high, printing mild losses to challenge the three-day uptrend of late, as markets await the key US Nonfarm Payrolls (NFP) during early Friday. In addition to the pre-data anxiety, a rethink over the latest dovish bias about the Federal Reserve’s (Fed) next move and the risk-negative headlines from International Monetary Fund (IMF) also appeared to have probed the Gold buyers.

However, downbeat early signals of the US employment and inflation conditions join the Fed policymakers’ readiness to ease the rate hike trajectory keeping the XAU/USD bulls hopeful. Also suggesting the bullion’s further upside are market consensus for the US employment report for November and optimism surrounding China, one of the world’s biggest Gold buyers.

Also read: US November Nonfarm Payrolls Preview: Analyzing Gold's reaction to NFP surprises

Gold Price: Key levels to watch

The Technical Confluence Detector shows that the Gold price remains beyond the previous key hurdle surrounding $1,796 despite the latest pullback. That said, the stated level encompasses Fibonacci 23.6% on one-day and 200-DMA.

Even if the quote breaks the $1,796 support, another key level including the Pivot Point 1 Week R2 and the previous monthly top surrounding $1,787 will be a tough nut to crack for the Gold bears.

It’s worth noting that the XAU/USD weakness past $1,787 won’t hesitate to challenge the weekly bottom surrounding $1,740.

On the contrary, the previous daily high near $1,805 and the upper line of the Bollinger on the D1, around $1,810, can test the Gold buyers.

Also acting as an upside filter is the Pivot Point 1 Day R1 near $1,815, a break of which will give free hand to the bulls.

Here is how it looks on the tool

fxsoriginal

About Technical Confluences Detector

The TCD (Technical Confluences Detector) is a tool to locate and point out those price levels where there is a congestion of indicators, moving averages, Fibonacci levels, Pivot Points, etc.  If you are a short-term trader, you will find entry points for counter-trend strategies and hunt a few points at a time. If you are a medium-to-long-term trader, this tool will allow you to know in advance the price levels where a medium-to-long-term trend may stop and rest, where to unwind positions, or where to increase your position size.

© 2000-2024. All rights reserved.

This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).

The information on this website is for informational purposes only and does not constitute any investment advice.

The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.

AML Website Summary

Risk Disclosure

Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.

Privacy Policy

Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.

Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.

Bank
transfers
Feedback
Live Chat E-mail
Up
Choose your language / location