The price movement of gold at the end of last week would have disappointed bullish traders after falling sharply on Friday from tracing a triple top at $1,833 per ounce.
Due to the optimistic forecast of the US jobs reports this month, the price of this safe-haven asset in reversing to the dollar is losing its buying trend from investors.
Investors await the latest data of the report including non-farm payrolls that are scheduled to be released this Friday — which will mainly indicate the health of the US labour market.
Investing.com on Monday quoted SPI Asset Management managing partner Stephen Innes saying that “the market is fearful of a stronger payrolls data, which will make the dollar stronger […] it will probably keep them from strapping on a lot of interest rate sensitive risks.
“The data will give investors more insight into the timeline for the US Federal Reserve to begin asset tapering by October 2021 if the next two US jobs report each show employment rising by 800,000 to one million.”
On the same day, Investing.com also reported that: “[…] the release of the monthly US jobs report and the direction of gold, oil and a few other key commodities could well depend on how healthy the labour market in the world’s leading economy is.”
As the data release of the US employment report on Friday will answer the greenback’s direction, the price of gold is now moving in a market box in the range of $1,755$ to $1,840 per ounce after posting a Doji candlestick on Monday.
In the daily chart, while gold prices are moving downtrend, traders can start placing sell position at $1,840, with a stop-loss function setting at $1,870 per ounce.
However, if the expectations in the US economic data turn negative, traders can wait to place a buy position at $1,755 per ounce with a stop-loss function at $1,725 per ounce.