Fundamental Descriptions: Gold Price has regained some strength as responsive buying kicks in after the precious metal tumbled to near $1,866.15 in the Asian session. Gold is likely to trade lackluster in the European shift as investors are on the sidelines ahead of the release of the NFP. The Fed on Wednesday hiked its interest rate to 1%, and the Bank of England followed by raising its interest rate to 1% a day later.
Technical View: If gold buyers manage to hold above the 200-SMA support, then the road to recovery could challenge the bear at $1,886. The next significant resistance is pegged at the $1,900 round level, above which the rising wedge upper barrier at $1,912 will be probed.
Alternate Scenario: Break below the above mentioned (wedge) trend line support at $1,872 will validate the bearish continuation formation. A retest of the three-month low of $1,850 will be on the probable side.
Technical View: If gold buyers manage to hold above the 200-SMA support, then the road to recovery could challenge the bear at $1,886. The next significant resistance is pegged at the $1,900 round level, above which the rising wedge upper barrier at $1,912 will be probed.
Alternate Scenario: Break below the above mentioned (wedge) trend line support at $1,872 will validate the bearish continuation formation. A retest of the three-month low of $1,850 will be on the probable side.