Gold Silver Outlook For Today, 04 August 2023: Another down week in the making for gold and silver price, as it is on track to book the worst week in six on Friday. However, the extended pullback in the United States Dollar (USD) combined with retreating US Treasury bond yields are helping put a floor under Gold price in the lead-up to the US Nonfarm Payrolls (NFP) showdown.
- Gold Prices direction undecided as traders await US inflation data
- Stocks trimmed part of their recent gains but remain in the red.
- The US economy is expected to have added 205K new jobs in July.
- Gold remains stuck around $1,927 (Support Level) and biased lower.
- Gold Price For Today: Gold Prices Rise Marginally as Traders Await Fed Signals
- Silver Price snaps three-day losing streak by recovering from 1.5-month-old rising support line.
- Convergence of 50-DMA, 38.2% Fibonacci retracement challenges silver buyers.
- 200-DMA, $23.00 appear tough nuts to crack for Silver bears during further downside.
- Firmer US NFP can trigger silver retreat but sellers have a bumpy road to travel.
The gold silver pair is stuck around the 61.8% Fibonacci retracement of its latest bullish run between $1,912 and $1,987.40 with the risk still downside. The intraday chart shows that the pair posts a lower high and a lower low for a third consecutive day while trading below the 20 and 100 Simple Moving Averages (SMAs). Technical indicators, in the meantime, have lost their bearish strength but remain directionless within negative levels.
The 4-hour chart shows that gold (Yellow Metal) holds below all its moving averages, with a firmly bearish 20 SMA extending its decline below a directionless 100 SMA. Meanwhile, the Momentum indicator recovers within negative levels, while the Relative Strength Index (RSI) indicator remains near oversold territory, maintaining the risk downside.
Gold bears stay below $1,947
Gold (XAU/USD) price remains mildly bid as it consolidates previous losses amid pre-NFP positioning. Also allowing the Gold Price to remain mildly bid are the headlines suggesting China stimulus and a pullback in the US Treasury bond yields from the highest level since November 2022.
