Gold (XAU/USD) Analysis, Price, and Chart
- Gold[1] struggles after breaking noted Fibonacci support.
- US dollar[2] under the microscope ahead of the latest US jobs reports.
The break lower in gold persists after the precious metal broke below the 50% Fibonacci retracement area around $1,764/oz. Gold printed a fresh two-and-a-half month low Tuesday at $1,750/oz. and currently trades just a handful of dollars above this level today. The current chart setup suggests that gold will struggle to break higher with the next area of support ($1,720/$1,724/oz.) around $40 lower than the current spot price.
US dollar strength continues to weigh on gold and the greenback may get a further boost today from a closely watched US jobs report. The latest ADP jobs data will be released at 12:15 GMT and is expected to show an increase of 600k new nonfarm private sector jobs in June.
US Dollar May Rise if ADP Jobs Data Supports Hawkish Fed Pivot[3]
While today’s ADP report may move the dial marginally, Friday’s US NFP[4] report will likely be the main focus for US dollar traders this week. The potentially market-moving monthly report is expected to show 700k new jobs filled in June, up from a prior month’s 559k.
For all market-moving news and data releases, see the DailyFX Economic Calendar[5]
The daily gold chart shows the recent price fall has now pushed the 20-day sma below the longer-dated 200-dsma, a short-term negative signal, while the CCI indicator has moved out of oversold territory, leaving room for a further move lower.
Gold Daily Price Chart (November 2020 – June 30, 2021)
Client sentiment data show 84.75% of traders are net-long with the ratio of traders long to short at 5.56 to 1.The number of traders net-long
