Gold Price Forecast: XAU/USD's outlook turns neutral as focus shifts to US NFP

Last week, gold posted gains despite Friday’s pullback. As FXStreet’s Eren Sengezer notes, XAU/USD bulls hesitate as focus shifts to US Nonfarm Payrolls.

Friday’s US jobs report could cause XAU/USD to break out of that range

“On Monday, the ISM will release the Manufacturing PMI report for July. Although the business activity in the manufacturing sector is expected to continue to expand at a robust pace, the Prices Paid Index component of the survey will be watched closely by market participants and a reading above 90 could revive inflation concerns and help the USD gather strength. The same goes for the ISM’s Services PMI report, which will be published on Wednesday.”

“On Thursday, the weekly Initial Jobless Claims will be the only data featured in the US economic docket. In the meantime, the Bank of England will announce its monetary policy decisions. It’s difficult to say if this event can have a direct impact on gold’s valuation but a sharp movement in the GBP/USD pair could affect the USD demand.”

“On Friday, the US Bureau of Labor Statistics will publish the Nonfarm Payrolls data for July. A stronger-than-expected reading could cause investors to price a hawkish policy outlook and lift the USD against its peers and vice versa.”

“On the upside, the initial resistance is located at $1,820 (200-day SMA) ahead of $1,830 (50-day SMA) and $1,845 (static level).”

“Supports are located at $1,810 (20-day SMA), $1,800 (100-day SMA, psychological level, Fibonacci 50% retracement of the April-June uptrend) and $1,790 (July 23 low).”