Gold price had a good week so far against the US Dollar, and it looks like it has formed a major support area at $1280 for more gains.
Gold Price Weekly Analysis – $1280 Is Major Support
· The US Dollar weakened this week against Gold price, as it traded near $1305.
· There was a break above a major resistance at $1280, which may now act as a support area.
· Today’s US NFP release may impact the market sentiment for Gold, and the buyers may look to buy near $1280-85.
Gold Price Technical Analysis
There was a rise in gold price this week, as it traded above the $1300 mark against the US Dollar. The price during the upside move cleared a couple of important resistances like $1280 and $1285. The recent moves suggest a bullish trend in the short term in XAU/USD.
The price traded as high as $1307.65 recently where it found sellers, and currently trading lower. It traded towards the 50% Fib retracement level of the last wave from the $1261 low to $1307 high in order to complete a correction.
It looks like there is a monster support formed at $1280. If the price corrects lower, then the bulls are likely to appear. There is also a bullish trend line positioned around the same level on the 4-hours chart. The RSI is also above the 50 level, which is a positive sign.
Trade Idea – If you are looking to enter a buy trade, then consider it near the trend line support area with a stop below $1272.
Today, the US will witness a monster release, as the NFP report will be published by the US Department of Labor. The market is expecting good numbers in October, and the best part is that the unemployment rate is forecasted to decline to 4.9%. The average hourly earnings is forecasted to increase by 0.3%, more than the last reading of 0.2%.
Let us see if the actual result if good or not. Gold price may decline a few points after the release, but as long as the $1280-75 support is intact, any losses may be limited.