Gold Price Forecast: XAU/USD lacks a directional bias as simmers a range breakout

Heading into a busy docket this Wednesday, gold is attempting a comeback. As FXStreet’s Dhwani Mehta notes, XAU/USD awaits a range breakout but not so soon while US NFP is in focus.

See – Gold Price Forecast: Indecisive Fed to underpin XAU/USD above $1800 – HSBC

US NFP holds the key but ADP and ISM Services PMI eyed in the meantime

“From a broader perspective, the greenback remains pressured amid the dovish Fed and weak US economic data while covid concerns help put a floor under the buck.”

“Looking forward, gold price is likely to waver in a narrow range as investors await fresh hints from the US ADP jobs data on the labor market recovery. Also, of note remains the US ISM Services PMI data, impacting the dollar valuations, in turn, gold price.”

“The downward-sloping 21-Simple Moving Average (SMA) at $1815 is testing the bulls’ commitment, as the range play above $1800 extends. On the other hand, the mildly bullish 50-SMA at $1810 is protecting the downside.”

“A sustained break above the 21-SMA could boost the buying interest, with gold bulls targeting the August 2 highs at $1820. However, the 50-SMA support caves in on a sustained basis, then XAU/USD could see a sharp drop towards the ascending 200-SMA at $1799. Ahead of that the August 2 lows of $1806 could be put at test.”