The yellow metal is heading higher against a weakening US Dollar, extending the 3.59% gain seen in April. A weaker-than-expected US manufacturing PMI report from the Institute for Supply Management (ISM) did not harm gold’s bullish movement.
Gold’s next boiling point likely lies with the April non-farm payrolls report due out this Friday. Market Analysts are expecting the US to add 1 million jobs, which would put the two-month streak at nearly 2 million jobs added following last month’s 916k jobs gain. Meanwhile, a series of Fed members will speak, with Eric Rosengren, Loretta Mester, Charles Evans, Raphael Bostic and Robert Kaplan on the schedule.
While Gold has made significant headway since shifting higher from the late March swing low – the second bottom of a Double Bottom formation – XAU/USD still has considerable technical obstacles to overcome. A key psychological region and perhaps most-watched level right now is the 1,800 mark. A break higher would likely add some bullish energy to the yellow metal.
Warning:
Trading on CFDs involves a high level of risk, including full loss of your trading funds. Before proceeding to trade, you must understand all risks involved and acknowledge your trading limits, bearing in mind the level of awareness in the financial markets, trading experience, economic capabilities and other aspects.
Disclaimer:
Market Trends, Charts, Trading Ideas or other information provided by BKFX (Pty) Ltd and/or third parties are not intended as an investment advice and/or recommendation. The information provided is not presented as suitable or based on your specific need. You are responsible for your own investment decisions and you should not trade with money you cannot afford to lose. Any views or opinions presented in this Article are solely those of the author and do not necessarily represent those of the Company, unless otherwise specifically stated. The Company may provide the general commentary which is not intended as an investment advice and must not be construed as such. Seek advice from a separate financial advisor if an investment advice is needed. The Company assumes no liability for errors, inaccuracies or omissions, inaccuracies or incompleteness of information, texts, graphics, links or other items contained within this article/material.