Gold Prices Approach These Lows!

Gold prices returned to previous ranges below $1,760 on Friday, after a $20 increase capped at $1,780 following the release of the US Non-Farm Payrolls report. The yellow metal has been moving with no clear direction for the past few days and has closed the week virtually unchanged. So what’s next for the gold market? cryptocoin.com We have compiled the evaluations and predictions of two analysts for you.

“Gold on the defensive against Fed contraction expectations”

Gold prices rose nearly 1% to $1,780, a two-week high, following weaker-than-expected US employment numbers. But the bullish momentum couldn’t go any further and reversed its gains as the market acknowledged the fact that this won’t deter the Federal Reserve from starting to cut back on bond purchases, possibly in November.

The US September Non-Farm Payrolls came in at 194,000, deviating significantly from the forecast for an increase of around 500,000. However, the unemployment rate fell more than expected by 5.1% to 4.8% from 5.2% in August. At the same time, average hourly earnings rose 0.6% monthly and 4.6% year-on-year.

According to market analyst Guillermo Alcala, gold prices remain on the defensive after losing nearly 4% in value over the past four weeks due to a number of factors. The analyst states that the gradual monetary policy normalization expectations of the world’s leading central banks and especially the expectations that the US Federal Reserve will announce the end of QE in the coming months have reduced the attractiveness of precious metals. Moreover, the US Benchmark Bond’s over 1.5% for most of the week strengthened the dollar, thereby increasing the pressure on dollar-denominated precious metal prices.

Gold prices

Gold prices technical view

Analyst Guillermo Alcala says gold is currently consolidating above $1,745 (October 6 low), below which the next level of support will be $1,720 (September 29 and 30 lows), which in turn will hit 2021 lows. ($1,680/90) states that he will follow and continues his analysis as follows:

Gold prices should bounce back above $1,760 (20-day SMA) and $1,780/85 (50-day SMA and Sept. 22 low). This will increase confidence in the bulls and push gold towards the Sept. 15 high of $1,807.

XAU

Now that the mess is over, what’s next for gold prices?

Market analyst Yohay Elam says the Technical Confluences Detector shows that gold has strong resistance at $1,748, the Pivot Point of one-day Support 1 and the convergence of one-week Fibonacci 38.2%, with the following levels pointing:

Looking up, the pending resistance cluster at $1,765 looks weaker. It consists of one-day PP Resistance 1 and one-month Fibonacci 38.2%. Looking further up, the next line to watch is $1,780, which is a combination of lines including Bollinger Band 15min-Upper, PP one-day Resistance 3, and Simple Moving Average 200-4h. Below $1,748, the next support is at $1,738, which is where the 61.8% Fibonacci one-week price hit.

Gold prices
Gold prices resistance and support levels

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