Gold’s Daily Price Analysis
Gold prices were closed at $1816.80 after reaching a high of $1820.10 and a low of $1785.30. Gold extended its gains on Friday and reached its highest since September 7th amid the renewed decline in the US dollar.
The US dollar was down on Friday despite a better-than-expected macroeconomic data release for the day. The US Labor Department revealed that US employers created about 531K jobs, which is the highest level since July September. It was a highly impacted report released by the US Labor Department. However, it failed to maintain gains in the greenback.
The greenback rose to its highest level in 15 months and reached 94.62 right after the release of NFP data, but the profit-taking and correction in prices dragged the DXY to the downside towards 93.62 and weighed on the greenback, which ultimately pushed gold prices higher in the market.
On the data front, the average hourly earnings remained flat at 17:30 GMT, with the prediction of 0.4%. The Non-Farm Employment Change increased to 531K against the predicted 455K and supported the US dollar, limiting the yellow metal gains. The US unemployment rate also plunged to 4.6%, against the anticipated 4.7%, and supported the US dollar, which capped further gains in gold prices.
Furthermore, the safe-haven appeal that emerged in the market also played an essential role in pushing higher gold prices. This week, the dovish tone adopted by many major central banks worldwide regarding interest rate hikes boosted demand for the safe-haven metal. Additionally, the US Treasury 10-year note yields dropped to their lowest level in about a month, which weighed on the greenback and added further gains in yellow metal prices on Friday.
Moreover, global coronavirus cases surpassed 250 million as some countries in eastern Europe experienced record outbreaks due to the resumed trade and tourism in many countries. Although health experts were optimistic that many nations had put the worst of the pandemic behind them due to vaccine inoculations and natural exposure, they were also concerned that the upcoming holiday gatherings and cold weather could increase the number of infections. These concerns kept the safe-haven appeal intact in the market and supported gold prices on Friday.
GOLD Intraday Technical Level
Support Resistance
1816.29 1819.84
1814.82 1821.92
1812.74 1823.39
Pivot Point; 1818.37
GOLD - Technical Outlook
The precious metal gold maintained its bullish streak on Monday, trading at $1,818 per ounce. On the bullish side, the XAU/USD’s next resistance prevails at the 1,829 level, which is extended by an upward channel. Gold has closed an upward channel on the 4-hour timeframe and that’s supporting the metal at 1,773. Considering a major difference between 1,829 – 1,773, there are multiple trading levels to consider.
For instance, gold’s immediate support prevails at the 1,807 level, which is being extended by an intraday pivot point level. A break below this level has the potential to extend the selling trend to the 1,795 and 1,785 levels. Conversely, a breakout of the 1,829 level exposes gold towards the 1,840 resistance level. Hence, the bullish bias dominates over the 1,807 level and vice versa. All the best!
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