Gold supported its negative pricing behavior with Positive Non-Farm Payrolls data after reaching$ 1439, weakened its sales-weighted status to $ 1389, and waited for the publication of the text prior to the Fed Chairman Powell’s presentation in the House of Representatives for the return trip. Both the publication of the pre-presentation text and the post-presentation question-and-answer section, which strengthened the appetite of buyers, Gold rose to $ 1427 level. This rise may target short-term targets of $ 1432 and $ 1439.
Today Powell will present at the Senate this time. Powell will repeat his presentation in the House of Representatives, which will then allow further action on the Gold price with answers to future questions. CPI data from the US before Powell should also be monitored for the Gold price.
Main scenario: Gold may wish to continue its positive outlook as long as it remains above$ 1389 – $ 1400 levels. The $ 1432 and $ 1439 resistance points are levels that can be targeted short-term with this in mind. If the $ 1439 level is raised, purchases can be accelerated towards the $ 1450 and $ 1462 levels.
Alternative Scenario: $ 1408 level should be broken down in order for sellers to show more appetite in gold price. With this change, negative pricing towards $ 1400, $ 1389 and $ 1381 supports can be monitored. If the $ 1358 level breaks down, a more accelerated course of sales may be seen, but from the technical point of view, such a possibility is not on the agenda.
Support: 1422 – 1408 – 1400 – 1389
Reistance: 1432 – 1439 – 1450 – 1462