Technical Analysis: Gold buyers lack smooth sailing above $1800, US NFP eyed
An upside break of $1,800 key hurdle, now support, propels gold prices to the highest since mid-May. However, a seven-week-old ascending resistance line probes the bullion buyers around $1,821-22 during early Friday as markets await the US Nonfarm Payrolls (NFP) for April. Although upbeat expectations back the gold buyers, amid hopes of risk-on mood following the data, 200-DMA close to $1,852 and late January tops near $1,875 become tough nuts to crack for gold buyers. Also hindering the north-run is almost overbought RSI conditions that suggest a pullback in prices.
Meanwhile, a daily closing below $1,797 will recall the gold sellers that earlier looked for mid-$1,700s. If at all the yellow metal remains bearish past $1,750, $1,715 and the $1,700 threshold could entertain the sellers before directing them to the yearly double bottoms around $1,676-78 area. Overall, gold is likely to remain firm but the bulls need a strong push to break the key upside barriers.