The price of gold trades to a fresh weekly low ($1795) following the better-than-expected US Non-Farm Payrolls (NFP) report, and the technical outlook casts a bearish forecast for bullion as a ‘death cross’ formation looks poised to take shape over the coming days.
The price of gold extends the decline from the weekly high ($1832) as the NFP report shows the US economy adding 943K jobs in July versus forecasts for an 870K print, and signs of a more robust recovery may continue to dampen the appeal of bullion as it puts pressure on the Federal Reserve to scale back its emergency measures.
Speculation for looming Fed exit strategy may keep the price of gold under pressure as the upbeat NFP figure pushes the 10-Year US Treasury yield to a fresh weekly high ($1.29%), and Chairman Jerome Powell and Co. may change their tone over the coming months as the central bank pledges to “provide advance notice before making any changes to our purchases.”
As a result, the price of gold appears to have reversed course following the string of failed attempts to test the July high ($1834), and the rebound from the June low ($1751) may continue to unravel as the 50-Day ($1819) and 200-Day ($1818) reflect a negative slope.
With that said, the price of gold may continue to give back the rebound from the June low ($1751) as the double-bottom formation from earlier this year seems to have run its course,and the technical outlook casts a bearish forecast for bullion as a ‘death cross’ formation looks poised to take shape over the coming days.
Source: Trading View
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This content was originally published here.
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