Gold May Test $1865/1870 This Week

Historically January is always a good month for the rising gold. Usually from mid-December till the end of February gold rises. This year also didn’t happen any exceptional. Gold already rose $80 from mid-December.

Omicron's concern also helped to boost the gold price as a safe-haven asset. This week the U.S has several market mover data to be released.

OPEC-JMMC Meetings
ISM Manufacturing PMI
JOLTS Job Openings
ADP Non-Farm Employment Change
FOMC Meeting Minutes
Unemployment Claims
ISM Services PMI
Average Hourly Earnings m/m
Non-Farm Employment Change
Unemployment Rate

The job market report is the most important among them. All the job market reports are forecasted positive than before. NFP expected 410K whereas the last report printed only 210K. Unemployment report expected dropped by 0.10% from 4.2% to 4.1% and average earnings forecasted 0.4% from 0.3%.

Now the question is can the positive job market report down the gold price a lot? I don’t think so.

Because firstly Omicron is spreading then we expected. We may see another lockdown. The gold usually rises in January. So, if the job market report prints positive we may see gold may drop initially but ultimately it will bounce back again.

Technically, from the present rate, $1800 is identified as channel support and $1815 may act as horizontal support. So, if us job market reports prints positive and gold dr0ps nearly $1800. We should think about buying. Breaking below $1780/1785 may open the door for $1760/1750 moreover. I don’t think gold will drop below $1750 for the next two months.

On the other hand, gold’s strong resistance is the $1830/1835 price zone. if gold can break above the $1830/1835 price zone, it easily can test the next resistance level of the $1865/1870 price zone.