Nonfarm payrolls will hit the news wire at the start of New York trading. The report is expected to show a gain of 190,000 jobs for the month of March. In the meantime, how does the yellow metal trade today? Gain insight into this 6 April Gold Price Technical Analysis.
6 April, GKFX – Gold has witnessed a solid two-way business in the previous two trading sessions, as markets stand divided on whether the US and China are cruising towards full-blown trade war or merely adopting a tough stance to bring the other party to the negotiating table.
Wage growth number will likely overshadow payrolls
However, in a larger scheme of things, the yellow metal lacks direction and awaits a convincing bull flag breakout.
The treasury yields and the US dollar will likely take a beating, sending the yellow metal above the flag resistance if the US March average hourly earnings print well below the estimates. On the other hand, a super strong number could push gold prices down to recent lows below $1,310.
Meanwhile, the Powell speech risks turning out to be a non-event, if the central bank chief defends the gradual rate hike path as expected. However, the metal may run into offers if Powell sounds hawkish.
6 April Gold Price Technical Analysis
A convincing move above $1,352 would confirm a bull flag breakout and open the doors to $1,366 (January high) and $1,375 (July high). On the downside, a move below $1,318 (100-day moving average) could yield a pullback to $1,307 (March 20 low) and $1,300 (psychological level).
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