XAU/USD has staged a recovery in response to weak Nonfarm Payrolls figures.
The Confluence Detector shows that gold faces significant resistance only at $1,914.
Gold prices pull back as traders book profits – What’s next? [Video]
Bad news for the US economy is sweet for gold – Nonfarm Payrolls rose by only 559,000 in May, below 664,000 expected and on top of only meager upward revisions. The disappointing data keeps America still short some 7.6 million jobs of pre-pandemic levels. If this slow pace persists, the Federal Reserve System will likely continue printing $120 billion per month for extended . a number of that flows to the valuable metal.
The next big event is inflation, due out only on Thursday, leaving room for technicals to possess a considerable impact.
Where next for gold from here?
The Technical Confluences Detector is showing that XAU/USD faces some resistance at $1,897, which is that the convergence of the straightforward Moving Average 50-4h, the Fibonacci 38.2% one-week and therefore the SMA 5-one-day.
The upside target is $1,914, which is where the previous monthly high and therefore the previous weekly high converge.
Some support is at $1,888, A level of confluence between the Fibonacci 61.8% one week and therefore the SMA 50-1h.
Further down, subsequent cushion is $1,879, which is that the Fibonacci 23.6% one-month and therefore the Pivot Point one-week Support 1 hit the worth .