Gold: Edges higher within bullish channel, focus on $2,530 and US NFP
Gold buyers are gearing up for potential weekly gains as the metal rebounds from a resistance-turned-support level that's been holding steady for seven weeks. With the crucial US August jobs report, including the Nonfarm Payrolls (NFP), on the horizon, traders are cautious before the release.
A smoother road for bulls
Gold's recent bounce from past resistance and a 2.5-month-old bullish trend channel suggest more gains ahead. That said, supportive RSI and weakening bearish MACD signals also favor buyers.
Important technical levels to watch
A 13-day-old descending trend line, close to $2,530 at the latest, guards immediate upside of the gold price ahead of the all-time high surrounding $2,532 marked in August. Following that, the aforementioned bullish trend channel’s upper line, close to $2,558, and the $2,600 round figure will gain attention of the buyers.
On the contrary, sellers will wait for a clear downside break of the multi-day-old previous resistance line, near $2,470 as we write, for taking fresh entries. Even so, a convergence of the 50-SMA and bottom line of previously stated bullish channel, near $2,439, will be a tough nut to crack for the bears before taking control. It’s worth noting that the 100-SMA level around $2,388 acts as an additional downside filter.
What Next?
Gold buyers are poised for potential new highs, but gains might be limited before the key US jobs data is released.
