Technical Analysis

GOLD Analysis – October 08, 2021

By LonghornFX Technical Analysis
Oct 8, 20213 min

Symmetrical Triangle & US Nonfarm Payroll in Play

During early Friday, gold consolidated weekly losses despite taking bids to refresh intraday high of $1,758, up 0.10 percent on the day. Although the improved market attitude supports gold buyers, the metal remains trapped in a short-term trading range due to pre-NFP nervousness.

Risk appetite improves as the U.S. Congress passes legislation to extend the debt ceiling by $408 billion until early December 2021. On the same theme, there were favorable reports about Sino-American relations and the People's Bank of China's (PBOC) willingness to maintain financial markets liquid.

On the contrary, the Fed's tapering troubles, combined with stronger data signals for the U.S. Nonfarm Payrolls (NFP), which are due out today, kept bulls on the defensive mode. The headline Nonfarm Payrolls (NFP) are expected to climb by 488K from 235K previously, while the Unemployment Rate is anticipated to drop to 5.1 percent compared to 5.2 percent before.

It's worth noting that the U.S. Dollar Index (DXY) is struggling for new hints, despite U.S. 10-year Treasury yields jumping 1.8 basis points to 1.59 percent by press time after reaching a four-month high the day before. Furthermore, Wall Street had another intense day by the end of Thursday, and S&P 500 Futures are expected to follow suit at the latest.

Moving on, gold prices may experience some volatility ahead of the significant U.S. jobs report for September, but the bulls face a difficult path to the north thus far. As a result, stronger employment data from the United States may exacerbate difficulties for gold buyers.

GOLD Intraday Technical Level

Support Resistance

1751.69 1771.64

1738.82 1778.72

1731.74 1791.59

Pivot Point: 1758.77

GOLD - Technical Outlook

On Friday, gold is trading with a bullish bias at the 1759 level. It is currently trading above an intraday pivot point of 1758, indicating a bullish bias for the precious metal gold.

On the upside, gold is anticipated to encounter immediate resistance around 1764, while a break above 1764 might push gold prices to the following resistance levels of 1773 and 1779. While gold is now bearish, it may find immediate support at 1758, which is being extended by a pivot point.

Below this pivot point, the 50-day SMA (simple moving average) at 1751 provides immediate support. Gold's bullish bias remains strong above 1,751 and bearish below the same level ahead of the nonfarm payroll numbers for the United States. All the best!


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