Bears look to retain control as focus shifts to US jobs report
Gold started the week on the back foot and fell to its lowest level in nearly a month below $1,730 on Monday before staging a rebound. Although XAU/USD managed to advance beyond $1,760 on Thursday, it struggled to gather bullish momentum and retreated below $1,740 ahead of the weekend. With Fed policymakers reiterating the significance of the August inflation and employment data ahead of the September meeting, gold could struggle to stage a rebound ahead of Friday’s Nonfarm Payrolls (NFP) report. In this article, we’ll detail Gold Weekly Technical Forecast for Week 35, 2022.
Gold technical outlook
Following Friday’s action, the Relative Strength Index (RSI) indicator on the daily chart dropped below 50, pointing to a bearish tilt in the near-term technical outlook. Additionally, gold failed to rise above the 20-day SMA after having tested level on Thursday.
On the downside, $1,720 (static level) aligns as the first support ahead of $1,700 (psychological level, the end-point of the latest downtrend). A daily close below the latter could open the door for an extended slide toward $1,680 (July 21 low).
$1,760 (20-day SMA, 50-day SMA) forms first resistance before $1,780 (Fibonacci 23.6% retracement of the latest downtrend) and $1,800 (psychological level, static level).
Gold sentiment poll
Our Forecast Poll shows that a majority of polled experts expect gold to stage a rebound next week. The one-month outlook, however, paints a mixed picture with half of the experts seeing the price holding at around the $1,730-$1,735 area.
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