Gold Price Forecast: XAU/USD climbs $1,770 as risk-on rebounds, US NFP buzz
- Gold price has recaptured the crucial hurdle of $1,770.00 as risk-off fades dramatically.
- Taiwan’s defense ministry is prepared to counter any military action from China.
- A lower consensus for US NFP will keep the DXY on the tenterhooks.
Gold price (XAU/USD) has displayed a responsive buying action after printing a low of $1,755.00 in the Asian session. The precious metal entered a corrective wave after a juggernaut rally for the past two weeks. Apart from that, a rebound in the positive market sentiment has bolstered the gold bulls.
Risk sentiment was turned sour earlier on escalating Sino-US tensions over Taiwan. The situation has yet not been fixed as Russian naval ships have joined Chinese ships near the Taiwanese disputed island. In retaliation to that, Taiwan’s Defence Ministry has cited that they will counter any move from China that will violate Taiwan's territorial sovereignty.
The US dollar index (DXY) was enjoying liquidity from the market participants on Tuesday after investors underpinned the risk-off impulse. Now, the downbeat consensus for the US Nonfarm Payrolls (NFP) is dragging the DXY lower. The DXY has printed a low of 106.00 as job additions are seen at 250k, lower than the prior release of 372k. While the jobless rate is seen unchanged at 3.6%. Major US corporate players have ditched the recruitment process for the remaining whose consequences will be observed in the employment data.
Gold technical analysis
The gold price has reclaimed the 20-period Exponential Moving Average (EMA) at $1,764.23 swiftly. On a four-hour scale, the precious metal is auctioning in a Rising Channel whose upper portion of the above-mentioned chart pattern is placed from July 22 high at $1,739.37 while the lower portion is plotted from July 21 low at $1,681.87.
The 50-period EMA at $1,750.00 has remained untouched and is advancing, which adds to the upside filters. Also, the Relative Strength Index (RSI) (14) is attempting to recapture the bullish range of 60.00-80.00 to accelerate the upside move.
Gold four-hour chart
Author
Sagar Dua
FXStreet
Sagar Dua is associated with the financial markets from his college days. Along with pursuing post-graduation in Commerce in 2014, he started his markets training with chart analysis.
