Gold fell sharply on Thursday but managed to rebound above $1,800. As FXStreet’s Haresh Menghani notes, XAU/USD bulls await sustained move beyond the $1,810/12 area.
NFP in focus
“The US economy is expected to have added 150K jobs in January. Several labour market indicators have been suggesting trouble in the US labour market at the start of 2022. This, in turn, points to a considerable risk of a negative surprise, which should exert pressure on the already weaker USD and lift gold prices.”
“It will be prudent to wait for some follow-through buying beyond the weekly high, around the $1,810-$1,812 resistance zone, before positioning for any further gains. Gold could then aim to test the $1,830-$1,832 zone before extending the momentum towards the January monthly swing high, around the $1,854 region.”
“Any meaningful dip below the $1,800 mark might continue to find decent support near the $1,790 area ahead of the $1,782-$1,780 region. Failure to defend the mentioned support levels would make gold vulnerable to slide further towards the $1,768-67 horizontal support.”