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Investing.com – Gold ended last week’s trading strongly higher after falling to last week’s lowest point at $1814 at the beginning of the week before futures contracts rebounded to $1862.8 levels on Friday at the end of trading, up 0.8% and adding $14.1 to spot futures contracts. Gold managed to add $45.40 and rise by 2.5% this week.
Likewise, prices stabilized at 1856.43, up $20.69, or 1.3%, on the last day.
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Watch this data
Gold’s movement this week will mainly depend on the expected data and the Fed’s comments. This week we await employment data as well as before Congress.
It is expected that the wave of growth will subside after adding 512 thousand jobs in the January data, as experts expect the market to add only 200 thousand jobs, and that the unemployment rate will stabilize at 3.4%.
And in the event that the data came out stronger than expected, which fuels the bullish momentum of inflation, it is expected that a 50 basis point interest rate hike will be priced in by the US Federal Reserve, which will lead to a stronger dollar, weak gold and high-risk markets.
But if the data witnessed a slowdown in the growth of the labor market, this could give a positive boost to gold.
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Gold: price forecast
If gold decides to rebalance the excessive conditions at the peak of the 4-hour time frame, it could test a pullback to $1850, which is if it can reach the $1845-$1838 support areas.
“If there is a further correction below $1838, we expect a retest of the $1835-$1830 range,” said Dikesev, a commodity specialist.
“In an upside scenario, gold has bullish potential towards $1,865,” Dixit said. “Then it will be $1876, which is the 200-day moving average on the 4-hour chart and the 23.6% Fibonacci level at $1879.”
