Gold price is trading lower in today’s trading ahead of the much-anticipated US NFP report for May. XAUUSD is currently down at $1,708.56 from its opening price at $1,712.96.
Due later today at 1:30 pm GMT, the US NFP report for May is expected to show that 7.750 million jobs were lost during the month. Meanwhile, the unemployment rate is seen to come in at 19% and average hourly earnings to print at 1.0%.
Better-than-expected readings could strengthen the dollar and push XAUUSD lower. On the other hand, disappointing figures could weaken the dollar and allow gold price to rally.
On the daily time frame, it can be seen that gold price has recently made lower highs after a series of higher highs. Consequently, a head and shoulders pattern has formed. When you enroll in our free forex trading course you will learn that this is considered a bearish reversal indicator. A strong close below the neckline support at $1,689.33 could trigger a bigger sell-off to $1,640.59 where XAUUSD could test the 100 SMA for support.
On the other hand, the 4-hour time frame shows that there is near-term resistance around $1,734.00. This price coincides with the falling trendline from connecting the highs of May 18 and June 2. If there are still enough buyers in the market, we may even see a break of this trendline and for gold price to rally to its May 18 highs at $1,764.00.More content