Technical Analysis: Gold needs $1,780 breakout to recall buyers on NFP day
Gold buyers attack a three-week-old resistance line as the market’s anxiety underpins the metal’s haven demand. However, the US Nonfarm Payrolls (NFP) remains awaited for fresh clues as the same will pave the ground for Fed tapering, which in turn could portray the US dollar strength and weigh on the gold prices. Technically, the immediate resistance line near $1,761 guards the quote’s nearby advances ahead of convergence of 200-SMA and the short-term horizontal area surrounding $1,780. Should the bulls manage to cross the $1,780 hurdle, the $1,800 threshold and $1,808 levels may entertain them before September’s top near $1,834.
Alternatively, pullback moves may fade around $1,745 but any more weakness will be challenged by two-month-old horizontal support near $1,724. Also acting as a downside filter to the yearly low of $1,678 is the $1,700 round figure. It should be observed that the RSI hints at further recovery moves but MACD needs a fundamental boost to regain traction.