Gold’s price has been flirting with a 50-day SMA on the daily time frame for the past number of days, and it seems like bulls are struggling to keep their head above water. We have seen gold prices soaring during the past few weeks, mainly due to the adverse geopolitical conditions in Ukraine.
Those tensions are still very much under control as it seems that Russia is withdrawing its troops from Ukraine but only regrouping them. Gold traders are keeping a close on these political tensions and making sure they have an adequate hedge in their portfolios. Having said that, something which worries them is the hawkish monetary policy stance by the Fed, and a strong number by the Fed today is likely to push the dollar index higher and gold price lower. The Fed is serious about controlling inflation now, and as a result, they are adopting a hawkish monetary policy.
Today, the gold price is expected to remain volatile, and it is likely that we may see wild swings in the gold price. If the US nonfarm payrolls reading disappoints today, we are likely to see the gold price sharply moving to the upside. However, if the number comes in extremely strong, which means above 500K, we could see further weakness in the gold price.
The near-term resistance for the gold price is at 2058, while the support is at 1890.
