Gold Climbs Higher As Adp Disappoints

 Gold Climbs Higher As Adp Disappoints

Gold (XAU/USD) Climbs Higher To $1830 As ADP Disappoints

Gold (XAU/USD) has finally got a chance to shine once again and has already crossed the $1830 level. On Wednesday, the ADP data was released, which was very disappointing for all the market players.

After the ADP, the US T-bond yields also took the backfoot and eased down to around 4.8%. Once again, that's a factor that supports XAU/USD as it belongs to the non-yielding assets category.

GOLD D1 Shows Oversold Conditions

The RSI on the Gold daily chart (D1) is also showing signs of oversold conditions. Once again, it points toward a modest bounce and consolidation in the Gold prices for the short term. Despite all of these positives, there is a lack of buyers in the Gold market, which means the long-term outlook for the yellow metal remains negative.

That's why we also can't rule out the possibility of Gold moving below the important level of $1815. If this possibility turns into a reality, then the chances of targeting the $1800 support will also become a high probability.

Since the outlook of Gold is mostly negative, it makes sense to focus more on the support levels rather than the resistance levels at the top. After the $1800, we have the important region of the $1770 to $1760. On the top side, the nearest resistance is located near the $1835 and then the $1850.

For now, the bigger fundamental picture favors Gold in the near term only, but we can't say the same about the long term. The ADP was a disappointment, but we can't take it as a measure for the NFP report due in the next few days.

Any next move in the Gold market will now be driven by the bond yields, interest rate policy, jobless claims, and the highly anticipated NFP report. Any mixed data or USD-bearish data will allow the Gold to shine once higher and move higher towards the $1850 and then the $1900 levels.

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