Gold Price Forecast: XAU/USD could resume the downtrend on strong US NFP data
Gold price is consolidating the previous rebound near the $1,830 level in Friday trading ahead of the all-important US Nonfarm Payrolls data. In case, the US NFP blows past expectations, XAU/USD could retest 100-Daily Moving Average (DMA) support, FXStreet’s Dhwani Mehta reports.
XAU/USD to recapture 21 DMA on a disappointing NFP report
“Strong US NFP could reinforce bearish bets on Gold price, smashing rates back toward the critical 100 DMA support at $1,810. Ahead of that, the March 8 high at $1,824 could offer some respite to Gold buyers.”
“A sustained break below the bullish 100 DMA cap could initiate a fresh downswing toward the flattish 200 DMA at $1,775.”
“On the flip side, the Gold price is likely to firmly recapture the 21 DMA resistance at $1,835 on a disappointing US labor market report, which could push back against expectations of bigger Fed rate increases. Further up, Gold price could challenge the $1,850 psychological mark, with eyes on the weekly top at $1,858.”
See – NFP Preview: Forecasts from 10 major banks, many new jobs created