Gold Steady Near $1,870 – Buckle Up for US Nonfarm Payroll - Forex News by FX Leaders

Gold Steady Near $1,870 – Buckle Up for US Nonfarm Payroll

Posted Friday, May 6, 2022 by
Skerdian Meta • 1 min read

After falling to near $1,866.15 in the Asian session, the gold price (XAU/USD) has regained some resilience as responsive buying kicks in. The precious metal is expected to trade flat in the European shift as investors remain cautious ahead of US Nonfarm Payrolls (NFP) release. The US Bureau of Labor Statistics is expected to report 391k new job opportunities in the labor force, which is less than the previous record of 431k, while the unemployment rate is expected to fall from 3.6 percent to 3.5 percent.

XAU/USD

Consistently tight labor market conditions point to the Federal Reserve (Fed) striking an extremely hawkish tone in June. Market participants are still reeling from the uncertainty of May’s monetary policy meeting, and global market think tanks have begun forecasting June’s policy announcement.

Meanwhile, the US dollar index (DXY) has set a trading range of 103.46-103.94 until the US NFP is released. The 10-year US Treasury yield has fallen to near 3.06 percent, but their stability above that level is critical for the greenback bulls.

Gold Technical Outlook

The GOLD price was unable to maintain a long-term hold above the 1890.00 level, resuming its bearish path as it returns to the bearish channel, which we expect to push the price to negative targets starting at 1850.00 and extending to 1814.50.

As a result, unless the price rallies to breach 1890.00 and hold with a daily close above it, a bearish bias will be suggested for today, supported by the negative pressure formed by the EMA50. Today’s trading range is expected to be between 1850.00 support and 1890.00 resistance.
Today’s expected trend is bearish.

Today’s predicted trend: Bearish

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