- Gold price has faced barricades at around $1,870.00 amid anxiety over the US NFP.
- Lower ADP Employment Change numbers are advocating a vulnerable performance from the US NFP.
- The DXY has slipped below 101.70 on positive market sentiment.
Gold price (XAU/USD) is displaying a lackluster performance in the Asian session as investors are awaiting the release of the US Nonfarm Payrolls (NFP). A downward shift in the Automatic Data Processing (ADP) Employment Change has triggered anxiety over the NFP figures.
The ADP Research Institute has reported addition of 128k jobs in the labor market, significantly lower than the estimates of 300k. It is worth noting that the US labor market is at its peak levels and employment generation may get slower amid less room for growth. Therefore, investors should brace for a slower job growth rate. As per the market consensus, the US NFP is seen at 325k.
The gold price is performing well against the greenback as investors are expecting that the actual NFP figure won’t even justify the consensus. A lower than expected job in addition will fetch significant offers to the US dollar index (DXY). Currently, the DXY is oscillating below 101.70, and more downside looks possible considering the strength of the bears on the counter.
Gold technical analysis
Gold (XAU/USD) has to witness barricades while stabilizing above the crucial resistance placed at $1,870.00. The 50- and 200-period Exponential Moving Averages (EMAs) at $1,857.14 and $1,850.76 respectively are advancing, which adds to the upside filters. Meanwhile, the Relative Strength Index (RSI) (14) is oscillating in a bullish range of 60.00-80.00, however, an overbought scenario cannot be ruled out.
Gold hourly chart