Gold to Likely End the Week In a Consolidative Range

Gold to Likely End the Week In a Consolidative Range

Gold (XAU/USD) continued on a sideways range between the $1,777 and $1,772 price levels into the early European session.

The yellow metal failed to take advantage of yesterday’s intraday bounce from a low of $1,757 following the positive US monthly jobs report. The NFP report showed that the US created 4.8 million jobs in June, surpassing analysts’ expectations by 1.8 million. Also, the unemployment rate dropped to 11.1% from 13% in May.

Furthermore, China released an upbeat Caixin Services PMI in the early Asian session on Friday, reaching its highest point since April 2010. These positive economic data renewed investors’ hope for a V-shaped global economic recovery.

This comes on the heels of fresh optimism over a potential vaccine for the Coronavirus which extended support for a risk-on market tone. The renewed risk-on sentiment undermined demand for safe-haven assets and prevented gold from making any significant gain.

However, the ever-increasing number of Coronavirus cases across the globe and concerns over the possible renewal of lockdown restrictions has kept the overall market sentiment gloomy. This coupled with the continuing selloff of the USD has extended further support to gold.

Meanwhile, markets will likely not be very active today considering the holiday in the US. That said, we will likely remain in a consolidation range for the majority of today.

XAUUSD – Daily Chart

Gold (XAU) Value Forecast — July 3

XAU/USD Major Bias: Sideways

Supply Levels: $1,779, $1,790, and $1,800

Demand Levels: $1,765, $1,758, and $1,745

As mentioned above, we are likely to end the week in a consolidative range, considering that the US is on holiday. However, a breakout in price (either to the upside or downside) in the near-term is not off the table, considering that we are nearing a wedge. A fall from this level will likely provide a further bounce for gold as we keep the $1,800 price in focus.

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