Gold Price Forecast: XAU/USD juggles around $1,720 as DXY turns subdued, US ADP job data buzz

Gold price (XAU/USD) oscillating around $1,720.00 after dropping from $1,726.50 as investors are awaiting the US Automatic Data Processing (ADP) emplo  |  05/10/2022 07:14
  • Gold price is playing in a limited territory around $1,720.00 ahead of US ADP Employment data.
  • The risk sentiment is displaying a mixed response as yields have turned sideways.
  • The event of the US NFP will display the true status of the US labor market.

Gold price (XAU/USD) oscillating around $1,720.00 after dropping from $1,726.50 as investors are awaiting the US Automatic Data Processing (ADP) employment data release for fresh cues. Fresh demand recorded in the US dollar index (DXY) from 110.20 is fading now as the fragile rebound move is met with significant offers of around 110.50.

Risk-profile is displaying mixed response as yields have turned sideways. The 10-year benchmark US Treasury yields are hovering below their day’s high of 3.64%.

FX domain needs fresh impetus for a decisive move and investors have shifted their focus toward the US ADP data. As per the projections, the US labor market has witnessed a fresh addition of 200k jobs in September vs. the former addition of 132k. The status of lower job additions could compel the Federal Reserve (Fed) to slow down the pace of hiking interest rates as economic projects are needed to be cared for while combating the inflationary pressures.

Later this week, the US Nonfarm Payrolls (NFP) data will provide the true picture of employment status in the US. Considering the US NFP data, the US economy has created 250k jobs in September, lower than the August reading of 315k.

Gold technical analysis

Signs of exhaustion in the uptrend are clearly visible in the gold prices after failing to continue the bumper rally towards the 61.8% Fibonacci retracement (placed from August 10 high at $1,807.93 to September low at $1,614.85) at $1,734.58. Consideration of a bearish reversal could be a little early as corrective moves are generally observed after a juggernaut rally.

The gold prices are comfortably established above the 200-period Exponential Moving Average (EMA) at $1,696.00.

The Relative Strength Index (RSI) (14) is showing a bullish bias as it is oscillating in a bullish range of 60.00-80.00. However, a correction towards 60.00 cannot be ruled out.

Gold four-hour chart

 

Share

Popular News

Show More Popular News

Market Insight's Views

Market Insight analyses will provide both fundamental and technical comprehensions on FX
and other asset classes for Market Insight viewers

RISK WARNING

The information provided herein is for general informational and educational purposes only. It is not intended and should not be construed to constitute advice.

If such information is acted upon by you then this should be solely at your discretion and GKFX will not be held accountable in any way.

  • ForexF
  • IndicesI
  • CommoditiesC
        Back

        Login to Market Insight Account

        Your Market Insight account gives you access to the tools that we offer our customers including our
        Technical Studies & Sentiment for your accounts.

        Forgot Password?

        Don't you have a Market Insight account? With a few easy steps you can easily register to Market Insight

        Create a Market Insight's Account

        Your Market Insight account gives you access to the tools that we offer our customers including our Technical Studies & Sentiment for your accounts.

        register_ty

        Thank you!

        Welcome to Market Insight family!

        You have succesfully completed the registration.
        We will send you an e-mail to give you some
        instructions and our Terms and Conditions!
        Our account representatives will be contacting you as
        soon as possible. If you have any further questions
        please do not hesitate to mail us via info@marketinsight.com