Gold futures are weakening in the early hours of Friday, due to which the market is in a position of third consecutive weekly loss. Treasury yields are rising as market pressures rise and the US dollar is rising.
With the US non-farm payrolls report for April being released at 12:30 GMT, trading is expected to remain light overnight.
At 03:00 GMT, June Comex gold futures are trading at $1875.10, down $0.60 or -0.03%. On Thursday, the SPDR Gold Shares ETF (GLD) closed down $0.61 or -0.35% at $175.19.
Investors are waiting for the April jobs report, which is due for release on Friday morning. Economists surveyed by Dow Jones expect employers to add 400,000 jobs to non-farm payrolls, up slightly from 431,000 in March. According to the Dow Jones, the unemployment rate is expected to drop to 3.5% in April from 3.6% in March.
Traders do not expect this report to have much impact on gold prices unless it turns downward. If this continues, then the price of gold may strengthen.
daily swing chart technical analysis
The main trend is down as per the daily swing chart. However, the momentum shifted upwards after Tuesday’s closing price reversal bottom.
A trade through $2003.00 would turn the main trend upward. A move closing price above $1849.70 will negate the reversal bottom and signal a resumption of the downtrend.
A slight trend is also down. A trade through minor tops at $1910.70 and $1921.30 would confirm a change in momentum.
The nominal range is $1849.70 to $1910.70. The market is currently trading on the weaker side of its pivot at $1880.20, forming resistance.
The next resistance is a price cluster from $1897.70 to $1908.10, followed by the 50% level at $1932.90.
Daily Swing Chart Technical Forecast
The trader’s reaction at $1880.20 will determine the direction of the June Comex gold market on Friday.
A sustained move below $1880.20 would indicate the presence of sellers. If it creates enough downside momentum then look for a break in the main bottom at $1849.70. A breakout from this level could lead to another break from the February 11 main bottom at $1824.40.
A sustained move above $1880.20 would indicate the presence of buyers. This could trigger an increase to $1897.70, followed by a resistance cluster at $1908.10 – $1910.70.
A breakout above $1910.70 would indicate that buying is consolidating. It could extend the rally into a minor top at $1921.30, followed by the 50% level at $1932.90.