GOLD PRICE ANALYSIS: XAU/USD BULLS STAY HOPEFUL ABOVE $1,800, US NFP EYED

[fxfarmerashik]

• GOLD PRINTS MILD GAINS INSIDE BULLISH CHART PATTERN.
• USD WEAKNESS, INCREASING ODDS OF SOFTER NFP KEEPS BUYERS HOPEFUL.
• COVID JITTERS, JAPANESE POLITICS, AND US ISM SERVICES PMI ARE IMPORTANT TOO.

Gold (XAU/USD) prices step back from an intraday high surrounding $1,815, up 0.12% on a day near $1,812 heading into Friday’s European session. In doing so, the yellow metal rises the most in three days inside a bullish chart pattern ahead of the key US Nonfarm Payrolls (NFP).

Gold prices cheer upbeat market sentiment and weaker US dollar to stay firmer. That said, the US Dollar Index (DXY) refreshed monthly low in Asia before recently paring the losses to 92.20.

Firmer risk appetite could be linked to the softer catalysts for the US jobs report for August marked a soft NFP, versus 750K expected and 943K prior, pushing away the Fed tapering concerns. Also positive for the mood could be the receding hospitalization in the US and mixed numbers in Asia–Pacific, not to forget the vaccine optimism surrounding the UK.

The Initial Jobless Claims and Continuing Claims eased from the market consensus for the week ended on August 27 Thursday and the four-week average of Initial Jobless Claims also declined from 366.75K to 355K.

Previously, the ADP Employment Change and the employment component of the US ISM Manufacturing PMI both signaled a contraction in the US jobs and marked the need for further easy money policies.

Additionally, talks of Japanese PM Yoshihide Suga’s resignation and the UK’s battle for the likely stringent virus-led lockdown in the future also portray the current risk appetite and underpin the EUR/USD bulls.

That said, S&P 500 Futures rise 0.20% intraday, tracking the Wall Street benchmarks that closed mildly positive on Thursday whereas the US 10-year Treasury yields drop 0.4 basis points (bps) to 1.29% by the press time.

Moving on, gold will cheer a likely weakness in the US jobs report for August as it cuts the odds of the Fed’s tapering. However, the key employment details are famous for delivering surprises and hence keep the traders on their toes. Also important will be the US ISM Services PMI for August, 61.5 forecasts compared to 64.1 prior. 


By Dailyforextrading.net

[Resolve]

The prices of the Gold are also related to the strength of the US Dollar.