As predicted in the preview of the NFP using gold price action, disappointing numbers have meant that gold price (XAU/USD) has shot up to 3-month highs as the greenback faces some heavy selling post-NFP.
Not only was the last number downgraded from 916K to 770K, but the actual figure of 266K was a hefty disappointing in terms of job additions to the US economy. The unemployment rate also rose from 60.% to 6.1%, which was worse than the predicted figure of 5.8%.
Not even the improvement in wage inflation from -0.1% to 0.7% was enough to support the US Dollar, which ended up losing ground to the yellow metal by 0.88%. The gold price hit 3-month highs but has pulled back slightly and now trades at 1830.62 as of writing.
Technical Levels to Watch
The active daily candle has met a brick wall in the supply zone found between the 1828.54 price level (floor) and the 1840.55 mark (ceiling). Bulls must shatter this wall for gold prices to ascend higher. If this attempt is successful, then 1860.77 becomes the new target. Additional resistance is seen at 1881.68, with 1900.95 also coming into the picture if the advance is extensive.
On the flip side, a rejection at the supply wall allows for a correction towards the 1815.20 former resistance, now acting as support. Below this level, additional support is found at 1789.49, with 1763.30 and 1741.01 also lining up as further pivots to the south.
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Gold Price (XAU/USD) Daily Chart
