Gold price (XAU/USD) is seeing some limited upside action as the US Non-Farm Payrolls showed that the US public sector added 850,000 jobs. This figure surpassed the market expectation of 725,000 job additions and trumped the previous month’s hiring of 583,000 jobs (an upward revision). However, the unemployment rate ticked up by a basis point, rising from 5.8% to 5.9%.
Despite the improvement in hiring numbers after several months of disappointments, the US employment market is yet to recover to pre-pandemic levels. The emphasis for the job reports at the moment is to see whether the labour market is recovering at a level that will convince the Fed to start tapering. At the moment, the labor market is not there yet. This is why the US Dollar has faltered somewhat across several pairs and against gold, allowing the XAU/USD to register a limited upside move this Friday.
Gold price is up 0.39% as of writing.
Technical Outlook for XAU/USD
Gold price on the XAU/USD daily chart is currently trading higher on a technical divergence between the price and the RSI. This 3-day winning run has met resistance at the 1789.49 price level, serving as the neckline to the double bottom.
A break above this resistance takes the gold price towards 1815.20, with 1800.00 serving as a pitstop. Ahead, the 1828/1840 price wall forms a resistance zone that must be surmounted before 1860.77 becomes available.
On the other hand, rejection and pullback from 1789.49 allow the 1763.30 price support to become available to the bears, with 1741.00 and 1719.13 forming additional support targets.