Gold found a base around $1,815 on Thursday. The yellow metal is trading in the green for the first time in nine trading days as buyers take a breather. There is a slight positive change in risk sentiment, driven by multiple fundamental catalysts. This saves the day for the gold price. However, further recovery looks difficult heading into crucial data from the US on Friday.
Key data for gold priceGold will arrive on Friday
cryptokoin.comAs you follow from , the gold price found a bottom around $1,915. Thus, Thursday ended the eight-day losing streak so far. The shiny metal is benefiting from the relief in the US bond market. However, new economic data from the USA is awaited for the continuation of the recovery. US Treasuries rose sharply as the bond market was rescued by a 5% sell-off in oil prices, weak US ADP employment data and the ISM Services PMI.
However, traders are looking to mid-level US weekly Unemployment Claims data for new momentum. After this, we will see whether the gold price will extend the recovery momentum. Friday’s US NFP report will hold the key to determining whether this is a dead cat bounce or a bullish reversal for the gold price. The U.S. economy is expected to add 170,000 jobs in September, up from the 187,000 jobs reported in August.
Gold price prediction: Trend has not reversed yet
Gold’s decline extended after falling below the June/August lows of $1,885/$1,893. Analysts at Société Générale analyze the yellow metal’s technical outlook. In this regard, analysts draw attention to the following levels:
Gold recently faced downside projections around $1,815, the lower end of the channel where the downward move has been developing since May. A recovery cannot be ruled out. However, there are no signs of the trend reversal yet; The lower band of the previous range near $1.885/$1.893 could provide resistance. If gold fails to defend $1,815, the downward move is likely to continue towards the February low of $1,805 and the 61.8% pullback to $1,786/$1,778 from September 2022. This could be an important support zone.
Gold price technical analysis: An upward move is possible!
Market analyst Dhwani Mehta draws the technical picture of gold as follows. The short-term technical outlook for gold remains more or less the same. Thus, the recovery from the seven-month low continues. The 14-day Relative Strength Index (RSI) indicator is still oversold. This supports the ongoing rise in the gold price. Gold buyers are targeting resistance, which turns into support at $1,850 if the immediate resistance around $1,831 is broken. It is possible that the recovery in gold may push the $1,880 levels seen on September 28 and 29.
However, the 100-Day Moving Average (DMA) is on the verge of crossing the 200 DMA from above. Also, this suggests that gold is a ‘sell on the bounce’ trade. Gold buyers need to gain acceptance above the $1,850 level to stave off bearish pressures in the near term. On the downside, gold will need to break Tuesday’s low at $1,815 to reach key support at $1,810, where the March 8 low was recorded. It will be difficult for gold sellers to break the $1,800 threshold.
Technical aanalysis: shiny metal ready to get weaker
market analyst Haresh Menghani also evaluates the technical outlook of gold. Technically when we look atthere are no follow-on purchases and new sales at higher levelsIts emergence indicates that the path of least resistance for the gold price is downwards. Therefore, a pullback towards a test of $1,815 or the recent multi-month low on Tuesday looks like a distinct possibility. The next relevant support lies near the $1,800 round-figure mark. This level, if broken decisively, will reveal the next relevant support near the $1,770-1,760 zone.
On the other hand, the daily high at $1,830 is currently acting as a strong resistance. However, it is possible that a strengthening beyond this will trigger a short-term rally. This is likely to raise the gold price to the $1,850 resistance on the way to the $1,858-1,860 barrier. On the other hand, $1,815 is emerging as a strong support. This is followed by the $1,800 round-figure mark, which if broken decisively will reveal the next relevant support near the $1,770-1,760 region.
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