XAUUSD: Will NFP Shift the Tide?

Apr 5

In my post from yesterday, I mentioned the possibility of a correction for OANDA:XAUUSD.
In a subsequent update, I emphasized that while such a correction was likely, traders should consider selling after a new spike above 2300.
Indeed, the price did spike above this level once more, only to drop by 400 pips afterward, precisely to the significant support at 2266.

Now, the question arises: Is the correction for Gold over?

The Non-Farm Payrolls (NFP) report could provide some clarity on this matter.
With the expectation that 200k new jobs will be added, we have two potential scenarios:

1. A NFP significantly better than expected could result in a break below the important 2266 support, in which case, the range of 2220-2225 would come into play.
2. Conversely, if the NFP meets or falls below expectations, we may see a continuation of the uptrend, pushing the price above 2300 and forming a strong support level at 2266.

From a technical perspective, there's currently nothing indicating a deviation from the medium-term bullish trend and bulls seem to have established a strong support level at 2266.

P.S: I'm out of the market at this moment, but, my gut feeling tells me an in line with expectation NFP and a continuation to the upside. I will update the idea after the announcement.

Regards!
Mihai Iacob

Apr 5

Note

Inspite of a very strong NFP, XauUsd continued to the upside and made a new ATH.
My gut feeling proved to be correct, also my analysis saying 2266 is very important floor for the price of Gold