This Friday's Non Farm Payrolls decisive battle, long and short may start a tug of war

During the Asia-Europe session on Friday (July 8), spot gold fluctuated within a narrow range and is currently trading around $1,741.55 per ounce. The market generally focuses on the US June non-farm payrolls report in the evening.

Analysts expect the number of employers of USA may be a 14-month low in June, but the unemployment rate may remain near pre-pandemic lows, underscoring a tight labor market that may encourage the Federal Reserve to resume work later this month. 75 basis points of rate hike.

The unemployment rate is expected to remain at 3.6% for the fourth straight month. Job creation may have been unexpectedly low in June due to seasonality, which was stripped out of the government's modelling after the pandemic caused shocks in the data.

Relatively speaking, if the number of new jobs is worse than expected, the gold price may drop further in the short-term, focusing on the support near 1721, but if the unemployment rate unexpectedly rises at the same time, it is expected to provide a rebound opportunity for the gold price. If the unemployment rate unexpectedly remains low and the number of new jobs is better than expected, you need to beware of the possibility of gold prices testing the 1700 integer mark.

Daily level: unilateral decline; moving averages are in short order, MACD is dead forked, Bollinger lines are open, and there is a risk of further decline in the short-term gold price. The initial support is near this week's low of 1732.17, and further support is near the low of 1721.76 in September last year. The strong support is near the 1700 integer mark, and you can also refer to the support near the low of 1690 in August last year.

Since KDJ has issued a short-term oversold signal, at present, the gold price is expected to be supported and adjusted in the 1700-1720 area; the initial resistance above is near the 1750 integer mark, the 5-day moving average resistance is near 1858.54, and the strong resistance is near the 10-day moving average of 1786.80., the bulls need to regain this position to rule out further downside risks.

Short-term operation suggestions: conservatives wait and see; radicals think cautiously with high-altitude lows and short-term operations.

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Risk Warning: The above content is for reference only, and does not represent the writer's opinion or investment recommendation. JRFX does not assume any form of loss caused by any trading carried out in accordance with this article. Please consult your financial planner for your investment portfolios and manage your own risk.

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