Last week on Friday, the bullion got hit hard as the market re-priced its Federal Reserve rate cut sentiments— taking a 50 base point cut off the cards in July. Today, the market has opened with a bullish bias as investors seems to price in the weaker unemployment rate. The US economy added 224k new positions in June, while the unemployment rate edged up to 3.7% and wage growth remained at 3.1%.

On Monday, gold prices are heading north, shaking off early losses to consolidate above the 1,400 pivot. For now, the ultimate focus has shifted to global growth concerns and interest rate cuts by major central banks.

GOLD – XAU/USD – Technical Outlook

Taking a look at the technical side, gold is consolidating in a wide trading range of 1,438 – 1,380. Looks like a good opportunity to capture winning trades in the rangebound market.

Although gold has crossed over 50 and 100 periods EMA, we can’t really say it’s a bullish signal as the market is facing limited trading volume on Monday and it may continue to trade sideways.

The RSI and Stochastics are neutral around 50, suggesting a neutral bias for traders.

Support Resistance
1384.44 1416.33
1369.6 1433.38
1337.71 1465.27
Key Trading Level: 1401.49

Gold – XAU/USD – Trade Idea

The idea is to stay bullish over 1,401 to target 1,410. While selling is suggesting below 1,401 to target 1,383.

Good luck!