Gold’s Bullish Bias Dominates – Quick Update on a Buy Signal - Forex News by FX Leaders
Gold's Bullish Bias Dominates - Quick Update on a Buy Signal

Gold’s Bullish Bias Dominates – Quick Update on a Buy Signal

Posted Monday, December 5, 2022 by
Skerdian Meta • 1 min read

In the early Tokyo session, the gold price is under intense pressure to break through the round-level resistance of $1,800.00. As the bullish US Nonfarm Payrolls (NFP) failed to fade the risk appetite trend, the precious metal is predicted to show additional gains ahead and may extend toward a new three-month high of $1,824.63.

The US Dollar Index (DXY) is set to retest the previous week’s low of about 104.40, as market participants believe that good employment growth in November will be insufficient to dispel predictions of a slowdown in the Federal Reserve’s interest rate hike pace (Fed). Furthermore, 10-year US Treasury rates have fallen below 3.50% with no intermediate cushion.

The United States ISM Services report, released on Monday, is the economic spark investors are looking for further direction. The economic statistics are expected to be stronger at 55.6 compared to the previous report of 54.4. Aside from that, the ISM Services New Orders Index data will impact GOLD prices. The economic statistics are predicted to be higher at 58.5, indicating healthy household demand that may give a buffer to future inflation.


Gold Technical Outlook

Gold price tested the $1,786.50 level and remained stable above it to rebound bullishly and resume the main bullish track. The price begins today with an additional bullish bias to approach our first extended target at $1,815. The rise should continue to surpass this level and head towards $1,850 as the next main target.

As a result, the bullish trend scenario will stay valid and active for the foreseeable future, organized within the bullish channel shown on the chart, reminding you that it is critical to hold above $1,786.50 to continue the predicted advance. Today’s trading range is likely between $1,795 support and $1,830 resistance.

Today’s projected trend: Bullish

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