Gold Price Forecast: XAUUSD struggles around $1,630 ahead of US NFP data

• Gold price has faced hurdles while attempting to cross the immediate hurdle of $1,632.45.
• S&P500 continued facing sell-off as the risk aversion theme remained intact.
• The release of the US NFP data will provide some clarity for further Fed’s monetary policy action.

Gold price (XAUUSD) is facing barricades around the critical hurdle of $1,632.45 in the early Tokyo session. The precious metal has remained sideways around $1,630.00 after a rebound move post registering a fresh two-week low at $1,616.67 on Thursday. The gold prices are expected to continue auctioning into a rangebound structure as investors have shifted to focus on the US Nonfarm Payrolls (NFP) data.

Meanwhile, the risk profile has extended its sour performance as S&P500 witnessed a sell-off consecutively on Thursday. Also, the 10-year US Treasury yields accelerated to 4.15% after hawkish guidance from the Federal Reserve (Fed) enchanted risk aversion on market mood.

On Friday, the release of the US employment data will provide cues about Fed’s intentions toward December’s monetary policy. A higher-than-expected improvement in job additions data would delight Fed chair Jerome Powell to continue the current pace of hiking interest rates.

As per the projections, the US NFP is seen at 200k, lower than the prior release of 263k. While the jobless rate could increase to 3.6%.

Gold technical analysis

On an hourly scale, gold prices have resurfaced firmly after printing a fresh two-week low at $1616.67. The precious metal is auctioning above the 10-period Exponential Moving Average (EMA) at $1,626.50 and testing the upside break of the 20-EMA around $1,630.00.

Meanwhile, the Relative Strength Index (RSI) (14) has shifted into the 40.00-60.00 range, which indicates that the gold bulls are not facing now downside momentum for now.

Gold hourly chart