On Thursday, the precious metal gold is trading strongly bullish at the $1,723 level. After feeling demand around the important support level of $1,700.00, the gold price has drifted sideways. The precious metal GOLD is attempting to break through the $1,720.00 barrier and will encounter its next roadblock, around $1,730.00. The yellow metal is holding its gains as market sentiment shifts negatively due to rising tensions between Japan and North Korea.

The idea of the Federal Reserve (Fed) announcing a third straight 75 basis point rate hike is now being debated. Earlier, San Francisco Fed President Mary Daly stated that inflation remains high and additional rate hikes are required. She reiterated that the Fed is “determined” to raise rates further to reduce inflation.

Aside from that, positive payroll figures indicated that the business hiring momentum has not yet slowed. The US Automatic Data Processing (ADP) data was 208k, up from 200k in the previous release. A better-than-expected US ISM non-manufacturing score also suggests that overall demand is strong.

The US Nonfarm Payrolls (NFP) release on Friday will provide a clear picture of the labor market’s state. According to the consensus, the economy added 250k new employment in September, fewer than the 315k reported in August.

Gold Technical Outlook

Gold price trades with clear bullish after consolidating above the $1,708.50 level in the previous sessions, receiving positive motive from stochastic, which makes us suggest more bullish bias in the upcoming sessions, noting that breaching $1,730.70 will verify the continuation of the rise and head towards $1,750.00, followed by $1,765.00 levels as the next main stations.

As a result, a positive bias is projected for today, organized inside the bullish channel visible on the chart, with a break of $1,708.50, putting the price under new negative pressure, with the price initially targeting the $1,686.40 mark.

Today’s trading range is likely to be between $1,710.00 support and $1,750.00 resistance.

Today’s projected trend: bullish