It is all about the US NFP data and traders are wondering if the data is going to provide any help for the gold price. Remember, on Wednesday, we saw the gold price moving higher on the back of lacklustre US ADP number. Expectations are high for the US NFP number and this means there is far greater risk of disappointment. If the actual number comes in lower than 500K, the market is going to respond big time which means that the dollar index may fall sharply and the gold rise could rise significantly. The reason is that traders will anticipate that the Fed isn’t going to tighten its monetary policy any time soon and the dovish monetary policy will stay here for some time.
In terms of technical prices, gold prices are really struggling to keep their bullish momentum. This week we have seen several battles between the price and the 50, 100 and 200-day SMAs on the daily time frame. The final result is that the price hasn’t been able to stay above these moving averages and it also broke below the 1800 price level briefly today. This indicates, the bears are in the driving seat and in order for them to lose control, the price much move above the 50, 100 and 200-day SMAs on the daily time frame.
