Gold price talk points
The gold price after a better-than-expected US non-farm payroll, trades fresh to a weekly low ($ 1,795) (NFP) report and technical outlook gives bullion a rough prediction of “death cross” formation looks like it’s going to take shape in the coming days.
The price of gold remains susceptible to the death cross after the NFP
The price of gold is prolonging the decline from a weekly high ($ 1,832) as the NFP report shows that the US economy will add 943,000 jobs in July, compared to a forecast of 870,000 publications, and signs of a stronger recovery may further reduce the attractiveness of bullion. this puts pressure on the Federal Reserve to reduce its emergency measures.
Speculation about the threatening Fedi exit strategy could keep the price of gold under pressure as a positive NFP figure pushes US 10-year Treasury yields to the highest level in a new week (1.29%) and the chairman Jerome Powell and Co. may change their tone in the coming months as the central banklet us know in advance before making purchases.“
As a result, the price of gold seems to have changed course after failed trials to peak in July ($ 1,834), and the setback from the June low ($ 1,751) may continue like 50 days ($ 1819) and 200 days ($ 1818) reflect a negative slope.
That being said, the price of gold may return from the lowest rebound in June ($ 1,751) double bottom formation since the beginning of this year seems to haveand the technical outlook casts a harsh prognosis on bullion, as a “death clover set” appears to be emerging in the coming days.
Gold price daily schedule
Source: Trading View
- Remember, a A double bottom emerged in In March as the price of gold failed to test the low price of June 2020 ($ 1,671), with the key reversal pattern elevating the precious metal above the 200-day SEA ($ 1818) for the first time since February.
- At the same time, Relative Strength Index (RSI) was pushed into overbought territory for the first time since July 2020, as the price of gold appeared to be on track to test for its January high ($ 1,959), but double-bottom formation appears to have progressed as the RSI no longer follows the uptrend earlier this year.
- Negative slopes in both 50-day ($ 1,819) and 200-day ($ 1,818) SMA show that the broader trend of bullion bars is tilted downwards, with the moving average showing the formation of a ‘death cross’.
- In turn, the price of gold seems to have reversed after a failed attempt to test the peak in July ($ 1,834) as it falls back below the 50-day SMA ($ 1,819), moving below the $ 1,786 (38.2% expansion)) area, bringing Fibonacci overlap on the radar about $ 1,743 (23.6% expansion) to $ 1,763 (50% retracement), which is the lowest level in June ($ 1,751).
- The next area of interest is about $ 1,690 (61.8% repurchase) $ 1,695 (61.8% expansion), with the lowest break in March ($ 1,677) opening in the $ 1,670 (50% expansion) area.
– Written by David Song, currency strategist
Follow me on Twitter at @DavidJSong