GOLD has corrected down, facing a BIG event weekOANDA:XAUUSD rose quickly after weak non-farm payrolls data, then fell sharply from highs above $2,760/ounce and finally closed lower, closing at around $2,736/ounce.
Gold prices quickly rose to 2,760 USD/ounce after the release of US non-farm payroll data, showing that only 12,000 new non-farm payrolls were added in October, much lower than the 113,000 expected. expected and much lower than in September. However, gold prices have since dropped and lost all of their price gains during Friday's trading day.
Hit by hurricanes and strikes by aerospace factory workers, U.S. nonfarm payrolls increased by just 12,000 in October, the smallest increase since December 2020.
Other data from the nonfarm report showed the unemployment rate remained at 4.1% in October, in line with expectations, and the increase in average hourly wages last month increased to 4.0% compared to compared to the same period last year, in line with expectations and higher than the 3.9% revision in September.
Hourly earnings increased 0.4% month over month, above the forecast 0.3% and the revised 0.3%. The average number of working hours also increased to 34.3 hours, higher than expectations of 34.2 hours, but still equal to the previously adjusted increase.
As noted by readers in the short comments, it is very possible that gold's downward adjustment period is not over yet as Friday's economic data is considered very positive for gold. If it is "theoretically" correct, gold should increase sharply as soon as the data is released, but there are possibilities that the market has digested all the previous data or the data will react after more fundamental impacts. another version.
Therefore, I needed to warn about this phenomenon with short comments!
Tensions in the Middle East have helped limit gold's decline
The BBC reported that Hezbollah launched a rocket attack in northern Israel, killing seven people. It was the worst attack in months and dashed hopes of a ceasefire in the war in the Middle East.
There are too many risks ahead of the US election, as well as rumors about Iran retaliating against Israel. Polls show a tight race between Donald Trump and Kamala Harris in next Tuesday's US presidential election.
Gold is a traditional hedge against economic and political instability and tends to thrive in low interest rate environments.
It must be noted once again that, although gold and the Dollar have been increasing together recently, it does not mean that this correlation has been lost. Gold and the US Dollar have a negative correlation and if Trump is elected, the US Dollar will continue to get stronger because of Trump's policy trends (This has been sent to readers in many publications), the US Dollar will be stronger. This means that gold will be subject to correlation pressure.
This week will be a trading week with many "huge" events with the Presidential election and the US Congress along with the monetary policy decision of the US Federal Reserve (Fed). It is expected to have a STRONG and DEEP impact on the gold market trend.
Economic data to watch out for this week
Monday: Reserve Bank of Australia monetary policy decision
Tuesday: ISM Services PMI, US Presidential and Congressional elections
Thursday: Bank of England monetary policy decision, US weekly jobless claims, Federal Reserve monetary policy decision
Friday: University of Michigan preliminary consumer sentiment
Analysis of technical prospects for OANDA:XAUUSD
On the daily chart, gold has a 2-day bearish correction with the short-term uptrend temporarily lost as price activity falls below the price channel. However, this is not a negative thing because the nearest support at 2,725 USD still keeps gold above it.
The relative strength index is pointing down from the oversold area but has not yet reached the 50 level, the 50 level is considered the nearest support point in terms of momentum.
Although gold has adjusted down, in the overall picture it still has an uptrend with long-term and medium-term price channels and important support at the EMA21 level.
As long as gold remains above the EMA21 and within the price channel, it still has a bullish outlook and the notable points are listed below.
Support: 2,725 – 2,710 – 2,700USD
Resistance: 2,745 – 2,768 – 2,786USD
SELL XAUUSD PRICE 2759 - 2757⚡️
↠↠ Stoploss 2763
→Take Profit 1 2752
↨
→Take Profit 2 2747
BUY XAUUSD PRICE 2708 - 2710⚡️
↠↠ Stoploss 2704
→Take Profit 1 2715
↨
→Take Profit 2 2720
