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Gold- Fundamental Vs Technical Analysis

Fundamental Analysis 

The precious metal is above the critical level of 1050 and if we do see a strong reading of the US NFP  on Friday, this level could easily be broken, because this will increase the odds further that the Fed will stay firm on their path of lifting the interest rate.

However, do no underestimate this gold price weakness, because the strong dollar is undoubtedly a problem for the US economy and henceforth, the FED will have to stay ultra dovish even when they want to increase the rate.

Technical Analysis 

The gold price is trading in a downward wedge pattern on a 4 hour time frame. The RSI is trading in line with the price action which means that momentum is behind the price action. We are also trading above the 20 day moving average shown in white colour but below th 50 day (shown in yellow) and the 100 day (shown in red) moving averages.

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