Gold Price Maintains Uptrend Despite Stellar NFP Figures; Could Its 2011 Highs be in Sight?

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Written By: Angeline Feliciano
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    Summary:
  • While gold price is currently unchanged from its opening price, technicals suggest that XAUUSD could soon rally to its 2011 highs.

While most assets gave up ground to the USD following the stellar June NFP report last Thursday, gold price quickly recouped its losses and even ended the day with a 67-cent gain. As of this writing, XAUUSD is virtually unchanged from its opening price around $1,773.45. However, technicals suggest that gold price could soon trade higher.

On the 4-hour time frame, it can be seen that the precious metal is testing support at the rising trendline when you connect the lows of June 5, June 15, June 17, June 18, June 26, and July 2. Reversal candlesticks around the trendline, around $1,773.50, could mean that XAUUSD may soon retest its July 1 highs at $,1788.88. If resistance at this price does not hold, we could soon see gold price rally to $1,920.60 where it topped in 2011.

What could push XAUUSD higher? Today, the USD ISM non-manufacturing PMI report is due to be released at 3:00 pm GMT. The consensus is for a reading of 50.0. If details of the report suggest potential weakness in the US economy, XAUUSD may trade higher.

On the other hand, it’s worth pointing out that gold price has recently made lower highs. Because this follows a series of higher highs, it suggests that a head and shoulders pattern could be in the making. A strong close below today’s Asian session lows at $1,769.80 could mean that XAUUSD may soon fall to neckline support at $1,763.50. If support at this price does not hold, it could trigger a bigger sell-off to $1,735.75 where gold price could test the 200 SMA for support.

Gold Price, 4-Hour Chart

Written By: Angeline Feliciano

Angeline Feliciano has been trading Forex for over ten years. She has invaluable experience working in FX education companies like BabyPips.com and Learn to Trade as a trader, currency analyst, trading coach, and presenter. Aside from these roles, she has also created intensive educational content on fundamental analysis which is heavily sought after by retail traders. She has taught hundreds of people how to trade the FX market in the Philippines and in Australia. When she is not trading, you can find her in the gym lifting weights.

Published by
Written By: Angeline Feliciano