XAU/USD Prediction: Gold Continues To StruggleJuly 9, 2022
Following the opening bell on Wall Street, Gold has gained bullish momentum and is moving toward $1,750. XAU/USD can maintain a positive value even though the standard 10-year US Treasury yield is up by 2%.
XAU/USD Meets With Resistance At $1,750
As the price got closer to $1750, the gold markets attempted to recoup during trade on Friday. However, this did not happen as it swiftly lost its gains.
Perhaps, there is some psychology involved in this region that is holding Gold back. The market’s main focus is currently on American interest rates and the US Dollar.
Meanwhile, It is still possible that the price will always encounter negativity at $1750. This is because this region is in a “sell the rally” position.
XAU/USD Price Chart. Source: TradingView
Furthermore, the next level of support is $1720. The gold market might go significantly lower if the price falls below this region.
The market has undoubtedly received a huge “punch in the face.” Therefore, it becomes logical that it would witness more downward pressure.
The Federal Reserve’s attitude would have to change for the gold markets to flip around abruptly. Gold appears extremely down at this point, so it will continue to receive a lot of unfavorable attention.
Presently, there is much resistance at the $1800 level. However, If the price of Gold could break above $1800, that would be encouraging.
Then, the market could witness a huge turnaround. Meanwhile, considering the current market situation, that is difficult to achieve. However, a move to $1850 might be possible if the market breaks over that $1800.
Market Awaits The US Non-farm Payrolls Report
Additionally, the $1850 region has a 200-Day EMA. Also, there is a lot of structural resistance there. As a result, the region is a good target for the gold market. This is because Gold could reach $1,900 if it breaks through the $1850 barrier.
Besides, traders are waiting for signs of exhaustion in the market to jump upon. Hence, surpassing the $1,850 level is enough to propel the market to about $1,900.
In the United States, the job report is usually on Friday. Hence, the outcome of the Friday report has a lot of bearing on the gold market. This is the time for traders to pay close attention.
The markets are anticipating the publication of the crucial US Nonfarm Payrolls report. The headline figure may reach 300K in June compared to the 268K recorded in May. Also, the US unemployment rate could remain unchanged at the previous month’s level of 3.6%.
Whatever the US job market data outcome, the dollar will likely continue in a win-win situation. However, the Fed is still committed to fighting the inflation monster.
As a result, it will maintain its hawkish tightening approach. In the near future, the shiny metal is still vulnerable to downside concerns.