Gold Price Forecast: XAU/USD to tackle the $1800 level on NFP disappointment

Gold price is holding onto the recent gains in the lead-up to the NFP showdown. As FXStreet’s Dhwani Mehta notes, the 100-day moving average at $1790 remains a tough nut to crack for XAU/USD bulls.

See – Gold Price Forecast: XAU/USD to stop its decline at the $1735 mark – Commerzbank

XAU/USD struggles below $1780, awaiting fresh trading impetus

“The US economy is expected to add 69K jobs in June after the terrible 559K numbers seen in May. The Unemployment Rate is seen dropping to 5.7% last month. Encouraging headline NFP data could bolster the Fed’s hawkish expectations, which could have a significant negative impact on gold price.”

“Ahead of the critical data release, gold price could maintain its range play below the $1800 mark, as investors refrain from placing any big directional bets on the precious metal.”

“On an NFP blowout, gold price could reverse its uptrend and drop back towards the $1751 support area. Ahead of that the previous week’s low at $1761 could offer some support to the bullish traders.”

“A data disappointment could possibly pour cold water on the Fed’s tapering and tightening expectations, in turn, offering extra zest to gold bulls. The 100-Daily Moving Average (DMA) at $1790 will emerge as the first critical upside hurdle to clear. A daily closing above the latter could negate the bearish near-term outlook, opening gates for a test of the $1800 threshold. The next relevant upside target appears at the downward-pointing 21-DMA at $1818.”