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.
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Gold price outlook
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.
Gold price chart, Daily
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.
Gold price chart, 4-hour