Gold Traders Brace For NFP Volatility

Gold HoldingGold prices are holding steady ahead of the US jobs reports later today. On the back of solid US data yesterday, US yields have turned higher. Gold bulls will be wary of these conditions heading not the headline data today. Despite continued calls for a US recession from some players, US data remains strong and, as such, so too do hawkish Fed expectations. Looking ahead to today’s data, if we see further strength in the labour market, this should send USD trading firmly higher near-term, pulling gold prices down.Today’s ForecastsIn terms of the numbers for today then. The market is looking for the headline NFP to print 224k down from 339k prior. Wages are expected unchanged at 0.3% while the unemployment rate is expected to tick down to 3.6%. If these forecasts are confirmed, this should keep the bullish USD story alive, dragging gold prices lower near-term. However, given how built-up expectations for a July hike have become, if we see any downside surprise today, this might fuel a sharp repricing of rate expectations, sending USD lower and allowing gold room to move higher.Technical ViewsGoldFollowing the break below the 1973.51 level, gold prices are holding up just ahead of the 1871.04 level. With momentum studies mildly bullish here, price is potentially carving out a base to make a fresh attempt at breaking above 1973.51. However, if we move lower here and the next support gives, 1805.18 will be the next support level to note.