#XAUUSD @ 1737.26 -imp levels: Gold prices are expected to deliver more gains after overstepping the immediate hurdle of $1,740.00.

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• Gold prices are expected to deliver more gains after overstepping the immediate hurdle of $1,740.00.
• The DXY has shifted into a correction mode amid of lower consensus for US NFP.
• A Bullish Flag formation is indicating more upside ahead.

The pair currently trades last at 1737.26.

The previous day high was 1758.94 while the previous day low was 1734.2. The daily 38.2% Fib levels comes at 1743.65, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1749.49, expected to provide resistance.

Gold price (XAU/USD) is displaying a lackluster performance after defending the immediate cushion near $1,736.00. The precious metal is auctioning in a narrow range of $1,737.00-1,738.28, however, an extension in recovery seems favored amid a correction in the US dollar index (DXY).

After printing a fresh two-decade high of 109.40 on Monday, the DXY shifted into a correction mode ahead of the lower consensus for the US Nonfarm Payrolls (NFP). Considering the market forecasts, the US NFP is expected to decline to 285k, against the prior release of 528k. Investors should be aware of the fact that the US economy is operating near full employment levels for the past seven months, which squeezes room for more job additions. Therefore, a decline in consensus for the US employment generation should not be considered as employment softening.

Also, the Unemployment Rate is seen as stable at 3.5%. One more economic data in which the market participants are keenly interested in the earnings data, which is expected to improve by 10 basis points (bps) to at 5.3%. As price pressures are advancing dramatically, earnings have remained subdued. Therefore, households are facing headwinds amid higher payouts for inflation-adjusted goods and services.

On an intraday scale, the gold prices are forming a Bullish Flag chart pattern that indicates a continuation in the upside momentum after a consolidation phase. A bullish cross, represented by the 20-and 50-period Exponential Moving Averages (EMAs) at $1,735.00, indicates more upside ahead.

Meanwhile, the Relative Strength Index (RSI) (14) has shifted into the 40.00-60.00 range from the bullish range of 60.00-80.00. This doesn’t warrant a bearish reversal but states that a time correction will trigger a fresh rally ahead.

Technical Levels: Supports and Resistances

XAUUSD currently trading at 1736.95 at the time of writing. Pair opened at 1737.82 and is trading with a change of -0.05 % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 1769.4, 50 SMA 1765.76, 100 SMA @ 1820.16 and 200 SMA @ 1837.39.

The previous day high was 1758.94 while the previous day low was 1734.2. The daily 38.2% Fib levels comes at 1743.65, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1749.49, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 1728.37, 1718.91, 1703.63
• Pivot resistance is noted at 1753.11, 1768.39, 1777.85

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