Gold Price Forecast: XAUUSD looks vulnerable ahead of critical US NFP

Gold Price is trading on the defensive so far this Friday, as traders move on the sidelines ahead of the all-important US Nonfarm Payrolls release. As FXStreet’s Dhwani Mehta notes, XAU/USD’s bearish potential appears intact.

A potential bearish wedge could challenge any upside attempts.

“The US economy is likely to have added 391K jobs in April vs. 431K created previously. A stronger than expected print is needed for the dollar bulls to continue Thursday’s rebound, drowning Gold Price towards the 200-Daily Moving Average (DMA) at $1,835. A dismal reading, however, could justify the Fed’s less hawkish stance, prompting the greenback to resume its correction from multi-year highs while benefiting Gold Price. 

“If gold buyers manage to hold above the 21-SMA support at $1,874, then the road to recovery could challenge the bearish 50-SMA at $1,886. The next significant resistance is pegged at the $1,900 round level, above which the rising wedge upper barrier at $1,912 will be probed.”

“A sustained break below the rising wedge trendline support at $1,872 will validate the bearish continuation formation. A retest of the three-month low of $1,850 will be on the table should the $1,860 demand area cave in.”

See – NFP Preview: Forecasts from 12 major banks, robust job growth