Gold Price Forecast: XAU/USD points to a potential move higher, NFP awaited

Gold is hovering around $1,810, seemingly awaiting the Nonfarm Payrolls verdict. XAU/USD is at a critical juncture but in the view of FXStreet’s Dhwani Mehta, the upside appears favored.

See – Gold Price Forecast: XAU/USD to slide below $1800 on strong NFP – OCBC

Gold’s 4H technical setup remains in favor of bullish traders

“Investors remain cautious ahead of the critical US employment, as gold attempts a bounce amid a mixed sentiment. The US dollar is licking its wounds amid expectations of the NFP reading underscoring the market consensus of 750K in August and 943K booked in July. Gold’s fate hinges on the NFP outcome, with risks skewed to the upside while it defends the 200-Daily Moving Average (DMA).”

“Acceptance above the upward-sloping 21-Simple Moving Average (SMA) at $1813 could call for a fresh advance towards the falling trendline resistance at $1817. 

“A four-hourly candlestick close above $1817 will confirm a symmetrical triangle breakout, with a test of the August highs at $1823 on the cards. Further up, the $1830 round figure will be put to test.”  

“A strong cushion is seen at $1806, which is the confluence of the bullish 50-SMA and rising trendline support. If the latter gives way, then a downside breakout from the triangle will get validated, opening floors for deeper losses towards the $1793 level, where the 100 and 200-SMAs intersect.”