Spot gold holds steady above the $1,755 key support as Friday’s job release approaches

August 4, 2022 - 2 weeks ago

Having taken a brief look at the support region of $1,755, the precious yellow metal prices edged higher on Thursday as the US dollar index (US DXY), which tracks the greenback against a basket of its peers, climbed to 106.28.

In economic data, the ISM services barometer of business conditions at companies such as restaurants and hotels rose to a three-month high of 56.7% from 55.3% in July, suggesting the U.S. economy continues to expand in the face of growing headwinds.

Meanwhile, Chicago Fed President Charles Evans said a 50bps point hike is on the cards in September, but a 75bps cannot be ruled out if needed.

This Friday, the U.S. Labour Department’s jobs report (Non-Farm Payrolls) is expected to show whether employers kept hiring in July after 372,000 jobs were added in June.

The forecast is currently at 250,000, and the unemployment rate is expected to hold steady at a historic low of 3.6%.

Based on the technical assessment, the Relative Strength Index (RSI) indicator 3-day lookback’ supports a positive signal, although it has rebounded from the 50-midway point, while the Moving Average Convergence Divergence (MACD) holds a positive signal. The ADX indicator supports a ranging market.

Due to the rebound from $1,755, eyes now look to the recent rejection point at the $1,774 retreat.

A break above here exposes the region to $1,800-06.

Conversely, another rejection and a New York close beneath $1,755 may reinstate the bearish call and expose the lower side of the recent range at $1,700 to $1,686-91.