GOLD Analysis – Gold is Increasingly Risky Towards the Release of NFP Data

<p>&nbsp;Gold trading still failed to unearth the excitement of investors when the price still failed to display a rising pattern again.</p><p><br /></p><p>However, investors also heaved a sigh of relief when the severe fall in gold prices stopped for a moment, seeing the price level around the $2,020 zone.</p><p><br /></p><p>With the US dollar still the driver of gold's movement, investors focused on the United States (US) jobs data this week.</p><p><br /></p><p>In yesterday's New York session, ADP employment data which measures the US private sector recorded a slow reading for November.</p><p><br /></p><p>However, the US dollar is seen to have managed to maintain its strengthening that has been exhibited since the beginning of the week.</p><p><br /></p><p>Now, investors are on the lookout for current market moves while waiting for the US NFP jobs report to be published on Friday.</p><p><br /></p><p>Looking at the XAU/USD chart which measures the value of gold against the US dollar, the price which reached an all-time high around 2140.00 has plunged significantly before hitting a weekly low of 2010.00 last Tuesday.</p><p><br /></p><p>Throughout Wednesday's trading yesterday, prices were flat between the 2020.00 and 2030.00 zones until continuing today (Thursday).</p><p><br /></p><p><br /></p><p>A slow movement of the price above the support line of the Moving Average 50 (MA50) on the 1-hour time frame of the chart gives an early signal for a possible price increase.</p><p><br /></p><p>If it does, the price is seen to make a rally to test the nearest resistance at the 2050.00 level.</p><p><br /></p><p>A higher move will target resistance at the 2070.00 level before continuing its climb.</p><p><br /></p><p>However, if the price drops to the bottom, it is very likely that the price will reach the 2000.00 level, which has been the focus since trading last October.</p><p><br /></p><p>The price can drop lower after displaying a more obvious bearish trend movement and investors need to be prepared for the probability of such a situation.</p>