Gold buyers are gearing up for potential weekly gains as the metal rebounds from a resistance-turned-support level that's been holding steady for seven weeks. With the crucial US August jobs report, including the Nonfarm Payrolls (NFP), on the horizon, traders are cautious before the release.
Gold's recent bounce from past resistance and a 2.5-month-old bullish trend channel suggest more gains ahead. That said, supportive RSI and weakening bearish MACD signals also favor buyers.
A 13-day-old descending trend line, close to $2,530 at the latest, guards immediate upside of the gold price ahead of the all-time high surrounding $2,532 marked in August. Following that, the aforementioned bullish trend channel’s upper line, close to $2,558, and the $2,600 round figure will gain attention of the buyers.
On the contrary, sellers will wait for a clear downside break of the multi-day-old previous resistance line, near $2,470 as we write, for taking fresh entries. Even so, a convergence of the 50-SMA and bottom line of previously stated bullish channel, near $2,439, will be a tough nut to crack for the bears before taking control. It’s worth noting that the 100-SMA level around $2,388 acts as an additional downside filter.
Gold buyers are poised for potential new highs, but gains might be limited before the key US jobs data is released.
