Gold bears battle key horizontal support ahead of US ADP dataGold justifies a downswing from 100-DMA and a 61.8% Fibonacci retracement break around $1,757 during early Wednesday. It should, however, be noted that a horizontal line from mid-March could test the bears around $1,755 amid nearly oversold RSI conditions, suggesting a corrective pullback. Failing to do so will make the quote vulnerable to decline towards the April 13 low of $1,723 before directing the gold bears to the yearly bottom surrounding $1,675. Though, the $1,700 threshold may offer an intermediate halt during the fall.
During the anticipated bounce, also the much-needed before Friday’s US NFP, 61.8% Fibonacci retracement level of $1,768 will act as an immediate hurdle before the 100-DMA near $1,792. Although gold buyers may gain conviction beyond $1,792, the $1,800 threshold and May 13 low, as well as February 23 top, respectively around $1,808 and $1,816, could test the metal’s further upside. Overall, gold prices brace for a bounce but today’s US ADP Employment Change data for June becomes the key as it’s a precursor to Friday’s Nonfarm Payrolls (NFP).
