Gold reversed upwards at the end of last week after receiving active support from buyers at 2,300 USD per troy ounce.
XAUUSD trading key points
- Current trend: gold has reversed upwards from the 2,300 USD support level
- Market focus: this week’s focus will be on the US employment market data
- Price dynamics: volatility is moderate but expected to increase following the release of the US employment market data
- XAUUSD price targets: 2,350, 2,368
XAUUSD fundamental analysis
Gold reversed upwards at the end of last week after finding support at 2,300 USD per troy ounce. This week, market participants await US employment market data for June, with the ADP Research Institute parameters due on Wednesday and nonfarm payrolls and the unemployment rate scheduled for Friday.
After the data is published, volatility in XAUUSD quotes may surge. Depending on the released data, a downward correction will either continue or end, with the price reversing upwards and rising further to the area of local highs.
XAUUSD technical analysis
On the H4 chart, XAUUSD continues to trade within a descending price channel. The price declined to 2,300, where it received active support from buyers and rebounded upwards. The quotes are currently trading at 2,326, with bulls attempting to go on the attack.
As part of this forecast, the nearest growth target for gold is the 2,350 resistance level, which coincides with the upper boundary of the descending price channel. If bulls surpass it, the next target will be the 2,368 level. A price decline below 2,300 might invalidate the growth scenario.
Summary
Gold has been moderately rising since the end of last week after gaining support at 2,300. This week’s US employment market data may be crucial for determining the future trend in XAUUSD movements.
