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Prospects for gold prices are associated with non-agricultural wages as the US dollar rises after the Fed

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Gold, XAU / USD, Fed, NFP, Technical Analysis, IGCS – opinions:

  • Gold prices canceled intraday income as US Dollar rallied after the Fed
  • XAU /USD considers the report on the salary of non-agricultural food, which goes on the weekend
  • The Cross of Death is the focus of the daily schedule when retailers are betting on bulls

Gold prices have offset strong intraday gains over the past 24 hours as risk appetite deteriorated the day after the Federal Reserve raised benchmark lending rates by 50 basis points. On Wednesday, stock markets and to some extent gold rose as Fed Chairman Jerome Powell cooled future bets to raise 75 basis points.

A quick reversal in the next 24 hours speaks to the reality facing the yellow metal. The Hawks Central Bank, with a quantitative tightening not far off, tends to portend yields on government bonds and the U.S. dollar. The latter two complicate anti-fiat gold prices.

Heading into the weekend, XAU / USD is eyeing the long-awaited report on U.S. non-agricultural wages. Traders may pay special attention to the average hourly wage to see how inflation continues to develop. Strong figures in the latter could portend bad for gold if the US dollar and bonds rise.

Gold technical analysis

Gold prices remain on a downward trend after reaching a peak in March. In general, it can be argued that the upward trend has been observed since August. Prices are consolidating between the fall in resistance since March and the rise in support since August. Until a breakthrough is achieved, yellow metal may continue to consolidate between these key trend lines. Recently, a bearish death cross appeared between 20- and 50-day simple moving averages. Further losses and clearing support open at least 2022.

Daily chart XAU / USD

Chart created using TradingView

Gold IG customer sentiment analysis is bearish

Looking at IG Customer Attitudes (IGCS), about 83% of retailers are pure gold. IGCS can sometimes act as an opposite indicator. As most of them are prone to growth, this suggests that prices may continue to fall. This means that the risk of decline decreased by 17.99% and 13.87% compared to yesterday and last week, respectively. With that in mind, the combination of current and recent mood swings offers stronger bearish opposing trade bias.

Prospects for gold prices are associated with non-agricultural wages as the US dollar rises after the Fed

* IGCS data used from 5 Mayth report

– Author Daniil Dubrovsky, Strategist for DailyFX.com

To contact Daniel, use the comments section below or @ddubrovskyFX on Twitter

https://www.dailyfx.com/forex/fundamental/daily_briefing/daily_pieces/commodities/2022/05/06/Gold-Price-Outlook-Glued-to-Non-Farm-Payrolls-as-US-Dollar-Gains-After-the-Fed.html

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