Gold: Key US Jobs Data in Focus
George Lam May 5, 2020 11:13 PM
Gold has seemingly entered into a consolidation range, as investors await the U.S. ADP private jobs report due tonight (-21 million jobs in April estimated)...
Gold has seemingly entered into a consolidation range, as investors await the U.S. ADP private jobs report due tonight (-21 million jobs in April estimated) and the non-farm payrolls this Friday. It is worth noticing that the market is already anticipating gloomy employment data, where the actual outcome may not take anyone by surprise.
From a technical point of view, spot gold maintains a modestly bullish bias as shown on the 30-minute chart. It is currently trading within a consolidation range, after a technical rebound, where a bullish RSI divergence was spotted. The level at $1,692, which is a recent turning point, may be considered as the nearest intraday support level. A break above the nearest resistance at $1,714 would be needed for gold to gather more upside momentum and open a path to $1,730. In an alternative scenario, losing $1,692 may trigger a pull-back to $1,682 and $1,671 on the downside.
Source: TradingView, Gain Capital
For the longer-term as shown on the daily chart, spot gold is holding up well after surging past its prior high. Despite a modest pull-back, the previous resistance level now acts as a support, which were tested several times. It is now trading within a symmetrical triangle, following a rally previously. Bullish investors might consider $1,655 as the nearest support, with potential upside targets at $1,748 and $1,790. Alternatively, a break below $1,655 may suggest gold is heading back to $1,610 and $1,575.
Source: TradingView, Gain Capital
Disclaimer: The information on this web site is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement. The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.
Futures, Options on Futures, Foreign Exchange and other leveraged products involves significant risk of loss and is not suitable for all investors. Losses can exceed your deposits. Increasing leverage increases risk. Spot Gold and Silver contracts are not subject to regulation under the U.S. Commodity Exchange Act. Contracts for Difference (CFDs) are not available for US residents. Before deciding to trade forex and commodity futures, you should carefully consider your financial objectives, level of experience and risk appetite. Any opinions, news, research, analyses, prices or other information contained herein is intended as general information about the subject matter covered and is provided with the understanding that we do not provide any investment, legal, or tax advice. You should consult with appropriate counsel or other advisors on all investment, legal, or tax matters. References to Forex.com or GAIN Capital refer to GAIN Capital Holdings Inc. and its subsidiaries. Please read Characteristics and Risks of Standardized Options.