Gold was able to cross its strong resistance level at $ 1,810 today in the American session and shot to near one-month tops, around the $1,830 region further to the disappointing headline NFP figure. The US dollar follows suit and was weakened once again after the closely-watched US monthly jobs report showed that the US economy added 235K new jobs in August. This was well below the previous month's upwardly revised reading of 1053K and missed expectations by a big margin.
Investors sentiment were changed today and the growing threat of Delta Variant will continue to weigh on the US Labour market. We believe that NFP report is an essential catalyst for gold. And today a weak job report could force the FED to delay its tapering plans and of course the rising inflation rate which could send gold to $ 1,900 in the near future.
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Gold’s short-term outlook becomes now ahead of a bullish position. With the NFP disappointing figure, we don't believe that the FED will start its tapering this september 2021 and surely not in November 2021. Perhaps the next move for the FED tapering will be March 2022.
Moreover, the US economy is experiencing high inflationary pressures and that would be a great catalyst for gold.
Once gold breaks above $1850, bullish momentum might not have too much trouble rallying towards the psychological of $ 1870 and then $1900 level.
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A slight detour, but we are going there now imo, but dont target it, once it hits, it activates a huge inverse head and shoulders to 2145 it wont be time to cash out!
Mihai_Iacob
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Very good!
Dubai_Gold_Trader_786
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when 1900 is expected to come?
Gold_Professional_Sniper
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@Dubai_Gold_Trader_786, Once the psychological of $ 1870 is broken and then we can test the $1900 level.