Are you sure you want to exist?
MTrading Team • 2024-06-07

“Golden Cross” directs Gold buyers toward $2,400 as US NFP looms

“Golden Cross” directs Gold buyers toward $2,400 as US NFP looms

Gold braces for the first weekly gain in three even as it seesaws at the highest level in a fortnight early Friday. That said, the precious metal’s latest inaction could be linked to the cautious mood ahead of the US monthly employment data including the headline Nonfarm Payrolls (NFP). Even so, the quote’s capacity to reverse from a month-old rising support line, backed by the bullish MACD signals and upbeat RSI (14) line, keeps the buyers hopeful. Apart from that, the 50-SMA also crosses the 200-SMA from below and portrays a bullish moving average crossover known as the “Golden Cross”, which in turn also suggests the XAUUSD’s upside. With this, the bullion is almost certain to hit an 11-week-old previous support line, now immediate resistance near the $2,400 threshold. However, a horizontal area comprising tops marked since early April, around $2,431-33, quickly followed by the all-time high of $2,450 flashed in May, will challenge the bulls afterward.

On the contrary, a strong US jobs report and a firmer US Dollar could drag the Gold price back toward the aforementioned SMAs, close to $2,346-45 by the press time. Following that, a one-month-old ascending support line near $2,320 and the $2,300 round figure will lure the XAUUSD bears. It’s worth noting that May’s low of nearly $2,277 acts as the final defense of the buyers, a break of which will give control to the bullion sellers targeting late March swing high surrounding $2,222.

Overall, the Gold price is likely to extend the previous run-up but the upside room is limited.

Join us on FB and Telegram to stay updated on the latest market events.