Gold: wide range of finishing

Fundamental Analysis.

Spot gold closed up 0.81% on Friday's (July 7) release of U.S. June nonfarm payrolls data that remained generally strong, with the unemployment rate lower as expected, the annual rate of hourly earnings unexpectedly higher, U.S. bond yields lower, and the dollar sliding. There is evidence that the lagging impact of monetary policy may start to show up in the economy and the Fed is likely to end its rate hike cycle in July 2023, with limited room for gold to fall in the aftermath.

Spot gold XAUUSD four-hour chart

Brief technical analysis.

4 hours chart, gold in 1910 a line of support for a strong rebound to 1930 mark near the MACD volume back through the zero axis business again, the trend remains to maintain a wide range of finishing, resistance concern 1930-1955, support concern 1910-1900.

Resistance level:1930 1950

Support level:1910 1900

Trading strategy: 1930 above the bullish, the target 1940 1950  

Alternative strategy: 1930 below bearish, target 1910 1900