Despite posting a Doji candlestick on Thursday, the Gold price appears well set for the second consecutive weekly gain as traders await the US employment details for June. In doing so, the XAUUSD defends the mid-week breakout of a month-old descending resistance line, now immediate support around $2,350, backed by upbeat RSI conditions and the bullish MACD signals. Also keeping the bullion buyers hopeful is the quote’s ability to stay beyond the 50-SMA level. However, a slew of upside hurdles and likely upbeat prints of the US jobs report, including the top-tier Nonfarm Payrolls (NFP), test optimists ahead of the key data.
Among the resistances, a fortnight-old horizontal area surrounding $2,365-68 caps the immediate upside of the precious metal. Following that, a region comprising multiple tops marked since mid-April, near $2,387-92, will challenge the advances before the last defense of the bears, namely a three-month-old horizontal region around $2,431-34. It’s worth noting that the $2,400 threshold and the all-time high marked in May around $2,450 are extra filters toward the north.
Meanwhile, the Gold sellers will need validation from strong US employment data and a daily closing beneath the resistance-turned-support line surrounding $2,350. In that case, the 50-SMA level of $2,339 will grab the attention of short-term XAUUSD bears. Should the quote remain weak past $2,339, it will quickly drop to $2,318 but a convergence of a three-month-old rising trend line and 50% Fibonacci ratio of March-May upside, near $2,297-96, will be a tough nut to crack for the sellers afterward. If the bullion bears manage to keep the reins past $2,296, the early April swing low of near $2,265 and the 61.8% Fibonacci ratio of $2,261 can flash on their radars.
Overall, Gold remains bullish ahead of the top-tier data but the upside room appears limited.
