Gold Price Technical Outlook


Dig into the 5 January Gold Price Technical Outlook as it shows that the precious metal is set to post fourth consecutive week of gains, as NFP holds the key.

5 January, GKFX–Gold prices edged lower on Friday and eroded part of previous session’s sharp up-move to fresh 3-1/2 month highs. Spot gold retreated below $1320 level, down 0.15% for the day, as attention shifts to the keenly watched US nonfarm payrolls data for fresh directional impetus.

Key Quotes

   •  An uptick in US bond yields prompts some profit taking.

   •  Risk-on mood/modest USD rebound adds to the pressure.

   •  All set for the fourth consecutive week of gains; focus remains on NFP.

A modest uptick in the US Treasury bond yields prompted some profit-taking off the non-yielding yellow metal, especially after yesterday’s single day up-move of around 1.5% from an intraday low near $1306 area. Meanwhile, the ongoing bullish run-up in equity markets also did little to support the precious metal’s safe-haven appeal, while reviving US Dollar demand exerted some additional pressure on the dollar-denominated commodity.

U.S. NFP-Investors’ Focus

Investors’ focus on Friday would remain glued to one of the important US economic indicators – monthly jobs report, popularly known as NFP, which is known to infuse volatility across global financial markets and should eventually provide meaningful trading opportunities on the last trading day of the week.

Nevertheless, the commodity remains on track to post fourth consecutive week of gains and all set for its highest weekly close since mid-September.

5 January Gold Price Technical Outlook

A follow-through retracement below $1317 level is likely to get extended towards $1312 horizontal support, which if broken might turn the commodity vulnerable to retest $1307-06 intermediate support ahead of the $1300 handle.

On the upside, momentum back above $1322-23 area would reaffirm near-term bullish bias and accelerate the up-move towards $1328 horizontal level en-route $1333-35 supply zone.

Disclaimer

This article “5 January Gold Price Technical Outlook ” was written by analysts at GKFX. The information provided herein is for general informational and educational purposes only. It is not intended and should not be construed to constitute advice.

If such information is acted upon by you then this should be solely at your discretion and GKFX will not be held accountable in any way.

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