Gold Price (XAU/USD) Talking Points:
- Gold prices rebound as Dollar strength subsides
- XAU/USD heads toward the 20-day MA (moving average) holding as resistance at $1,844.
- US NFP (non-farm payrolls) report in focus as Fed remains ‘data dependent’.
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![Gold Forecast](https://a.c-dn.net/b/1R2bOu/500x707Forecast-Gold.png)
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Gold Prices Recover Ahead of US NFP Job Report
Gold prices are trading higher on the back of a softer Dollar and an uptick in US jobless claims.
![image1.png](https://a.c-dn.net/b/0xFUqA/image1.png)
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As markets continue to digest Fed Chair Jerome Powell’s testimony, a slightly less hawkish second day of the two-day address, assisted in limiting further declines. After hinting at a higher than anticipated 50-basis point rate hike at the March FOMC, XAU/USD fell sharply on Tuesday, before stabilizing in yesterday’s session.
With a break of the 20-day MA (moving average) fueling the initial decline, prices continued to fall before reaching a low of $1,813. While the probability of higher rates has weighed on precious metals, an increase in jobless claims has placed the US NFP report at the forefront of risk sentiment.
![image2.png](https://a.c-dn.net/b/45JFSh/image2.png)
While prices rise back above the $1,830 handle, the repricing of rate expectations and lower yields could see prices rise further, pushing gold futures toward $1,860.
Gold (XAU/USD) Daily Chart
![image3.png](https://a.c-dn.net/b/3hUI4S/image3.png)
Chart prepared by Tammy Da Costa using TradingView
On the contrary, if the job report highlights comes in higher than anticipated, prices may continue to falter, driving prices back toward $1,800.
--- Written by Tammy Da Costa, Analyst for DailyFX.com
Contact and follow Tammy on Twitter: @Tams707