Spot gold (XAU/USD) is testing the bottom of the technical support area!
Will gold experts benefit from the deal?
Or will fundamentals keep buyers away?
Gold (XAU/USD) daily Chart by TradingView
In case you missed it, gold prices fell sharply on Friday after a stronger-than-expected US non-farm payrolls report.
This sent the XAU/USD pair rising to the $2,280 region, which is where the asset has found buying pressure at least twice since April, and is currently the top of the technical range on the daily time frame.
Remember that fundamentals usually lead to directional biases and volatility conditions in the market price. If you haven't done your financial homework on the US dollar and gold yet, it's time to check the economic calendar and stay up to date with daily fundamental news!
Will gold lovers consider its current prices a bargain?
The US dollar is about to take a shock due to important events such as the US CPI report and the policy decision made by the Federal Open Market Committee this week.
If events lead to net bullish strength for the US dollar, the XAU/USD pair may extend its downtrend.
The XAU/USD pair could reach inflection points such as the S1 pivot point line ($2,252) if not $2,200 levels near the 100 SMA on the daily chart.
But if gold sees bullish candles from its current prices, XAU/USD could jump back to the mid-range and pivot point levels ($2,351). We may also see a return to the top of the range near R1 ($2,425) and previous highs for the commodity!
what do you think? Will gold attract enough demand from its current levels? Or will XAU/USD extend its pro-USD bearish swing and force a bearish breakout?