Gold Price Forecast: XAU/USD Holds At $1,900 But For How Long?

<p>&nbsp;The gold market is hovering around $1,919 &amp; 1,905 today</p><p>The Dollar Index is seen to be holding on at $102.55 ahead of the release of NFP data later tonight</p><p>Will gold be able to defend the $1,900 support level?</p><p>Gold prices are struggling to recover as they held above $1,900 on the last trading day of the week.</p><p><br /></p><p>Traders are excitedly awaiting the United States (US) Nonfarm Payrolls (NFP) data which is very important to determine the new direction for gold prices.</p><p><br /></p><p>The NFP data determines the price of gold</p><p><br /></p><p>Nonfarm Payrolls and Average Earnings data played an important role for gold prices, which continued to decline for three consecutive days.</p><p><br /></p><p>Economists expect the US economy to add 225,000 jobs in June compared to the 339,000 growth reported in May.</p><p><br /></p><p>Average hourly wage growth was seen to rise 4.2% in the reported period, at a slightly slower pace than the 4.3% increase in May.</p><p><br /></p><p>The below-expected US jobs and wage inflation data has the potential to surprise and lead to a sudden sell-off in the US Dollar and US Treasury bond yields.</p><p><br /></p><p><br /></p><p>In this situation, the price of gold could benefit and make a recovery near the $1,953 barrier.</p><p><br /></p><p>On the other hand, if the US labor market report surprises, especially after the upbeat ADP report, gold prices could continue the downtrend towards $1,875, as a tighter US labor market will allow the Fed to stay on track for interest rate hikes.</p><p><br /></p><p><br /></p><p><br /></p><p>Based on the price movement in the Daily timeframe, the price of gold is seen to be difficult to break through the price level of $1,919.</p><p><br /></p><p>From a "seller" perspective, the focus price is seen to be $1,930 which will be the focus of gold traders if tonight's data provides a positive impact on the US Dollar.</p><p><br /></p><p>However, this week's focus level of $1,919 will be a major obstacle.</p><p><br /></p><p>From the "buyer" perspective, the focus price is seen at $1,905 as the focus of gold traders.</p>