Gold prices benefiting from a generally weaker USD undefeated in pitching the one 900 price level ahead of tomorrow’s critical US jobs numbers. Despite the slight drop in the US initial jobless claims, several analysts have argued that the improvement in the US labour market is still prolonged. These concerns may be proven or dispelled by tomorrow’s jobs numbers.
Investors are generally refraining from placing aggressive bets ahead of the non-farm payrolls on Friday. However also able to seize the initiative from yesterday’s uptick to push above the key $1900 psychological barrier. Gold prices are well on the way to posting the 3rd day of gains in four.
Today’s data from the US was mostly positive but not as positive as most analysts would have hoped. Initial Weekly Jobless Claims dropped from an upwardly revised number of 873K to 837K, but the number of US citizens on some form of benefits was still higher than previous averages. The ISM Manufacturing PMI also posted a lower-than-expected increase to show that the recovery in business conditions around US manufacturing was still lagging.
Tomorrow’s NFP data will dictate how gold prices end the 1st week that ushers in the 4th quarter of 2020.
Technical Outlook for XAUUSD
Today’s candle has breached the 1900.76 resistance but needs a second successive close above this level to confirm the breakout. This allows the price to target the 1918.68 resistance, with 1940.15 and 1954.77 lining up as potential targets to the north.
On the flip side, failure to establish a break above 1900.76 allows for a pullback towards 1869.39, with 1850.29 and 1821.61 presenting themselves as potential downside targets.
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Gold Price Chart (Daily)
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