What happened to gold commodity trading after the United States (US) NFP jobs data report was published last weekend?
If we look at the price movement on the XAU/USD chart which measures the value of gold against the US dollar last Friday, the price is seen continuing to decline to the 1850.00 zone.
Earlier, the price had made a rise testing the 1870.00 height zone and again failed to continue higher gains after the zone was tested for 2 weeks.
The bearish signal was evaluated by investors after the price fell below the Moving Average 50 (MA50) barrier level on the 1 -hour time frame on the XAU/USD chart making the gold fall continue at the beginning of the week.
The decline was driven by the strengthening U.S. dollar after a published U.S. NFP employment data report showed an increase in U.S. employment in May surpassing declining expectations.
Ahead of the FOMC policy meeting on June 15 with the expectation that the Federal Reserve (Fed) will raise interest rates by 50 basis points, investors will scrutinize the reading of inflation data this Friday first.
Yesterday's decline has seen gold head back to the 1830.00 level which is one of the key zones in current gold trading.
Continuing with the European session today (Tuesday), the price which has hovered in the area of 1838.00 in the Asian session has made a rebound to retest the 1850.00 zone.
If the 1850.00 zone is successfully broken, the price of gold could jump higher and will retest the 1870.00 resistance zone for the third week.
And if the bullish pattern is still successfully maintained, the next target for higher gains is towards the 1900.00 focus zone to record the latest 5 -week high.
On the other hand, if the gold price continues to decline, the price is seen to test the 1830.00 zone which has been one of the important zones in previous trades.
For lower declines, the next target is at 1810.00 or 1800.00 zone for the price to record the latest 3 -week lows.
