Gold price (XAU/USD) extends its consolidative price move during the Asian session on Friday and remains well within the striking distance of the highest level since June 21 touched earlier this week. The recent softer US macro data reaffirmed market bets that the Federal Reserve (Fed) will begin cutting rates in September. This keeps the US Dollar (USD) depressed near a three-week low and turns out to be a key factor acting as a tailwind for the non-yielding yellow metal. That said, the prevalent risk-on environment keeps a lid on any meaningful appreciating move for the safe-haven Gold price. Traders also seem reluctant to place aggressive bets and prefer to wait for the release of the US monthly employment details, due later today. The popularly known as the Nonfarm Payrolls (NFP) report will influence expectations about the Fed’s future policy decision and in turn, help in determining the next leg of a directional move for the XAU/USD.
Daily Digest Market Movers: Gold price traders remain on the sidelines ahead of the US NFP report
Technical Analysis: Gold price seems poised to appreciate further while above 50-day SMA breakpoint
From a technical perspective, Wednesday’s sustained breakout through the 50-day Simple Moving Average (SMA) was seen as a fresh trigger for bullish traders. Adding to this, oscillators on the daily chart have again started gaining positive traction and suggest that the path of least resistance for the Gold price is to the upside. Some follow-through buying beyond the $2,365 area will reaffirm the constructive outlook and allow the XAU/USD to reclaim the $2,400 mark. The momentum could extend further towards challenging the all-time peak, around the $2,450 zone touched in May.On the flip side, weakness back towards the 50-day SMA resistance breakpoint, around the $2,339-2,338 region, could be seen as a buying opportunity. This is followed by support near the $2,319-2,318 area, which if broken decisively could make the Gold price vulnerable to weaken further below the $2,300 mark and test the $2,285 horizontal zone. Failure to defend the said support levels might expose the 100-day SMA, currently near the $2,258 area, and the $2,225-2,220 support before the XAU/USD eventually drops to the $2,200 round-figure mark.More By This Author:USD/JPY Price Analysis: Reaches Top Of Channel, Primed To Fall XAG/USD Pulls Back From Two-week Peak, Downside Seems Limited Gold Price Sits Near Two-Week Peak, Lacks Follow-Through Amid Upbeat Market Mood
