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Topics of conversation about gold / silver:
- Gold prices fall under $ 1,800
- Silver prices stabilize above $ 25.00
- Non-Farm Payroll Report is said to be a key indicator of the Fed’s tightening
Gold remains below $ 1,800 as the NFP approaches
Gold prices continued to decline ahead of today’s payroll report as the Fed continues to track unemployment.
As inflation continues to rise, gold prices have remained relatively unscathed, followed by silver.
With inflationary pressures continuing to weigh on the market, the report is expected to be the Federal Reserve’s leading indicator for tapering, weighing on key commodities.
Daily FX Economic calendar
Gold Technical Analysis
In the short term, the price of gold would have to rise again above the key psychological level of USD 1,800 for a bullish breakout to be likely. This could be possible if inflation continues to rise and the delta variant continues to raise concerns about further global lockdowns.
Meanwhile, the recent formation of a death cross (the 50-day MA, falling below the 200-day MA) is usually viewed as a bearish indication that the 38.2% Fibonacci retracement is in the spotlight as the next level of support at $ 1,785 . With the RSI currently maintaining a neutral stance at 42, the next few weeks are likely to see a number of volatilities in the gold price as the US continues to factor in current economic conditions.
Gold daily chart
Diagram created by Tammy Da Costa with IG charts
Another major catalyst for gold (XAU / USD) and silver (XAG / USD) is US Treasury bond yields, which have continued to decline recently.
Chart of real bond yields and gold prices
Source: Fred.FedStLouis.Org
Silver Technical Analysis
For silver, the confluence zone is currently between $ 24 and $ 26, with price movement currently comfortably just above the key psychological level of $ 25. If prices fall, the next level of support is at the 61.8% retracement of the historical move at $ 24.16 while resistance remains at $ 26. As with gold, the RSI is currently within the range with price action below trendline resistance.
Silver daily chart
Diagram created by Tammy Da Costa with IG charts
— Written by Tammy Da Costa, Analyst for DailyFX.com
Contact and follow Tammy on Twitter: @ Tams707
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