XAUUSD jumped around 1% on Friday, following the Non-farm Payrolls report showing a slight increase in job changes and a lower unemployment rate. The results of the NFP are considered disappointing when compared to the previous ADP Employment Change, which showed that the private sector absorbed nearly one million new jobs. As a result, gold prices strengthened and closed the week at 1891.55 amid a pullback in the USD, while treasury yields saw a much more choppy reaction with less weakness.
Gold finished the trading week near the 1891.55 area. The asset price quote continues to move as part of the correction and formation of the inverted Head and Shoulders pattern. The moving averages show a bullish trend for Gold, where the daily price is above the 20/50/200 day EMA moving averages.
Average prices have support around 1850.00 and a bounce from 1856.01 last week indicates pressure from buyers and a potential rally. A break of the 1916.50 resistance would confirm further strengthening to 1959.28. A break of the support level at 1850.00 is biased downwards for correction, completing the inverted Head & Shoulders pattern with a bounce at the support level at 1808.00 or lower again at the correction level of 61.8%FR at 1768.00.
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Ady Phangestu
Analyst – HF Indonesia
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