Gold Price picked up renewed bids on Thursday to hit fresh monthly highs at $1,871, surpassing the previous week’s top of $1,870. Will XAUUSD extend the upside break on US NFP? Buyers could retain control in the near term on a close above the recent highs, FXStreet’s Dhwani Mehta reports.

XAUUSD is testing bearish commitments at critical triangle resistance

“The US economy is seen adding 325K jobs in May vs. 428K booked in April. A downbeat print is likely to add to the recent series of discouraging US economic data, rekindling slowdown concerns while ruling out aggressive Fed tightening expectations in the near term. This could render negative for the dollar, which could help the yellow metal regain its upside traction.”

“Buyers await a sustained break above $1,870 on a daily closing basis to confirm a triangle breakout, which will open doors towards the mildly bullish 100-Daily Moving Average (DMA) at $1,888. The next bullish target is seen at the bearish 50-DMA at $1,893, above which a test of the $1,900 mark remains inevitable.”

“If sellers fight back control on an upside surprise to the NFP figure, then XAUUSD could retreat towards the $1,850 psychological level. Further down, the horizontal 21-DMA at $1,846 could come into play. The 200-DMA at $1,841 could help limit the corrective decline in the near term. The last line of defense for gold bulls is the rising trendline (triangle) support at $1,834.”

See – NFP Preview: Forecasts from 11 major banks, strength continues