Gold is at a pivotal point ahead of Friday’s non-farm payroll, but the technicals suggest a clear direction. I’ll break it all down for you in today’s video.
Watch below to see the challenges XAUUSD bulls are facing and where gold might find its bottom this year.
Gold is testing a key resistance area today at $2,675, a level we’ve discussed in the VIP Discord group throughout the week.
This morning, XAUUSD finally reached it.
There are two main reasons why gold was likely to retest $2,675 this week.
First, it aligns with a short-term descending trend line from October’s all-time high for gold.
Second, $2,675 represents an unfilled daily imbalance from December, based on the lows from December 11th and 12th.
Imbalances like these often get “filled” as the market approaches them.
For the past few weeks, I’ve been eyeing a retest of $2,675 resistance, followed by a potential pullback to $2,525.
The ascending parallel channel from 2023 hints at a pullback to complete the pattern’s symmetry.
Gold hasn’t tested its 2023 channel support since February 2024, so a retest could be due this month.
That said, Friday’s non-farm payroll (NFP) will likely dictate gold’s next move.
If the US employment data favors the dollar, we might see gold pull back toward $2,585 and potentially $2,525 before forming a bottom.
On the other hand, weak US employment figures could push gold higher from this $2,675 resistance zone.
Full disclosure: I shorted gold this morning at $2,677 and shared the entry, stop loss, and take-profit targets with VIP members.
