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MTrading Team • 2023-08-04

Gold bears approach key support ahead of US NFP

Gold bears approach key support ahead of US NFP

Failure to cross a nine-week-old horizontal resistance drags the Gold price back an upward-sloping support line from late February, close to $1,920 at the latest. Adding strength to the downside bias is the falling RSI line and bearish MACD signals. However, the RSI line is below 50.0 and suggests bottom-picking, which in turn highlights the stated trend line support. Even if the metal breaks the $1,920 support, the 200-EMA level of around $1,905 and the $1,900, as well as June’s bottom of around $1,895, can challenge the XAUUSD bears. Following that, a slump towards the 78.6% Fibonacci retracement of February-May upside, near $1,860, can’t be ruled out.

Meanwhile, the Gold price recovery needs to cross the late July swing low of around $1,945 to convince the buyers. However, the metal’s further upside remains elusive unless crossing the previously mentioned multi-week-old horizontal hurdle surrounding $1,985. In a case where the XAUUSD buyers manage to keep the reins past $1,985, the $2,000 round figure and March’s high of around $2,010 will act as the final defense of the sellers.

Overall, Gold sellers are likely to witness a bumpy road ahead but may continue to occupy the driver’s seat.

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