The price of gold is fighting hard to climb higher after the most recent sell-off. The USD's depreciation helped the yellow metal to recover in the short term. These days could be crucial for the USD and gold as the US economic data could shake the markets.
The ISM Manufacturing PMI, NFP, Unemployment Rate, and the Average Hourly Earnings could bring high volatility and sharp moves. Gold should jump higher if the US figures will disappoint and the end of the week.
Gold is testing the $1,900 psychological level as expected. I've told you in my previous analysis that the price should approach and reach this level after the failure to stabilize under $1,862 level.
The short-term bias is bearish as long as it stays under the black downtrend line. A USDX's rally after today's US data could send the gold down again. The yellow metal needs a spark to be able to resume its short-term bound or to give birth to another downside momentum. The trajectory is undecided ahead of the US figures but I hope that we'll have a clear direction soon.
- XAU/USD Trading Tips
Buy a valid breakout above the black downtrend line, somewhere above the R1 ($1,928) level. The $2,000 and $2,075 remains achievable targets.
Sell a new lower low, drop below $1,848 level with targets at $1,800 and $1,744 levels.
