Gold price is reversing from a fresh four-month high above $1,800, as bulls take a breather before the United States Nonfarm Payrolls (NFP)-led massive volatility storm. The US Dollar has paused its downward trajectory amid a minor uptick in the US Treasury bond yields and a cautious market mood.
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Gold Price Forecast
Gold price is retreating to test the critical 200-Daily Moving Average (DMA) at $1,796, at the time of writing.
Gold bulls reclaimed that barrier for the first time since mid-June on Thursday.
The 14-day Relative Strength Index (RSI) has turned flat just beneath the overbought territory, justifying the latest leg down in Gold price.
Should the 200DMA resistance-turned-support give way, then a drop toward the November 15 high at $1,787 cannot be ruled out.
The next corrective target is seen at the previous day’s low of $1,762, below which floors will open up for a test of the bullish 21DMA at $1,749.
Alternatively, Gold buyers year for a weekly closing above the 200DMA, above which the $1,800 mark will be challenged once again.
