Gold Long from the Strong Support
Fundamental: NFP Report: 339,000 new nonfarm payroll jobs were added last Month, which was more then the estimated 190,000 Jobs. Not to forget that the May job numbers often show strength due to the seasonal summer jobs being added. Despite more then expected NFP numbers, the unemplyoment rose slightly from 3.4% to 3.7%. The market reacted strongly to this report strengthening dollar and Treasury yields where as the Gold Price declined sharply. President Biden deal to avoid the potential debt ceiling crisis reduced the probablity of recession,hence strengthening the US dollar further.
Furthermore the likelihood of an interest rate pause at the upcoming FOMC meeting in this month decreased but still remains high.
Technical: From technical point of View, Gold price is still in the uptrend in Monthly and weekly basis. From Daily to 4 HRs basis it is indicating bearish sentiment. It may once again try to test the liquidity zone around 1984 level. If the price sustains a move below 1992 , it suggests increasing selling pressure. This might push the price down to 1927 support level. on the other hand a sustained move above 1984 towards 1992 and above indicates the presence of strong counter trend buyers. This could drive the price to at least 2016.
All the Best
Furthermore the likelihood of an interest rate pause at the upcoming FOMC meeting in this month decreased but still remains high.
Technical: From technical point of View, Gold price is still in the uptrend in Monthly and weekly basis. From Daily to 4 HRs basis it is indicating bearish sentiment. It may once again try to test the liquidity zone around 1984 level. If the price sustains a move below 1992 , it suggests increasing selling pressure. This might push the price down to 1927 support level. on the other hand a sustained move above 1984 towards 1992 and above indicates the presence of strong counter trend buyers. This could drive the price to at least 2016.
All the Best
