Gold price is hovering below the resistance level of 1,820 in Monday’s sluggish market. UK’s Bank Holiday is largely behind the eased trading. Nonetheless, Fed’s dovish tone on Friday has buoyed the precious meal above the crucial support level of $1,800.
Declining US dollar
At the time of writing, the dollar index was up by 0.05% at 92.72. It is on a bearish consolidation pattern after dropping below the crucial support level of $93.00 on Friday. The lower-than-expected pending home sales have also exerted pressure on the currency. At the same time, the declining US bond yields has weighed on the greenback while boosting gold price. The benchmark 10-year Treasury yield is at 1.29, down from 1.35 on Friday.
Nonfarm jobs data
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In the ensuing sessions, investors will be keen on the US nonfarm jobs data scheduled for release in the course of the week. Positive job numbers will likely boost the US dollar while exerting pressure on gold price.
Analysts expect nonfarm jobs, set for release on Wednesday, to have increase by 625,000 in August. The figure is higher than July’s 330,000. Besides, Friday’s nonfarm payrolls is forecasted at 750,000 compared to 943,000. The country’s unemployment rate is also expected to have declined from 5.4% in July in 5.2% in August. The US initial jobless claims and manufacturing PMI will also impact the precious metal.
Gold price technical outlook
Gold price has begun the week in sideways trading. At the time of writing, it was down by 0.16% at 1,814.84. After dropping below the crucial support level of 1,800 in the previous week, Fed’s dovish tone on Friday triggered its rebound. However, it lacks enough bullish momentum to surpass the resistance level at 1,820.
On a three-hour chart, it is trading above the 25 and 50-day exponential moving averages. In the immediate term, gold price will likely remain buoyed above the psychological level of 1,800.
Below the 50-day EMA at 1,804.92, it may bounce off the support level along the 25-day EMA at 1,798.82. On the upside, a move above the resistance level of 1,820 will have the bulls retest the month’s high of 1,831.60.
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