Gold extends early week recovery from March tops to poke 50-EMA ahead of the key US employment data. The expected recovery in the headline Nonfarm Payrolls (NFP), coupled with the forecasts of downbeat Unemployment Rate, keep weighing on the metal prices. However, firmer RSI and MACD’s teasing of bulls may propel gold prices in case of a negative surprise from the stated jobs report. It should, however, be noted that a clear upside break of $1,780 immediate hurdle needs to cross the $1,817-20 area comprising the previous support line and 200-EMA to consolidate the previous month’s losses and regain the $1,800 threshold.
Meanwhile, a downside break of the recent low near $1,750 has hopes to bounce off mid-April lows near $1,723, not to forget mentioning the immediate support close to $1,763. In a case where gold remains depressed below $1,723, the $1,700 psychological magnet may test the bears ahead of directing them to the double bottoms marked March around $1,677. Overall, gold sellers seem tired and hence any surprises from the US data should be reacted with wider moves.
Meanwhile, a downside break of the recent low near $1,750 has hopes to bounce off mid-April lows near $1,723, not to forget mentioning the immediate support close to $1,763. In a case where gold remains depressed below $1,723, the $1,700 psychological magnet may test the bears ahead of directing them to the double bottoms marked March around $1,677. Overall, gold sellers seem tired and hence any surprises from the US data should be reacted with wider moves.