On Friday (July 5th) during the Asian market, the US dollar index continued to be under pressure and is currently around 105.00; Spot gold maintains a mild rebound trend within the day, with gold prices currently around $2362 per ounce. Valeria Bednarik, Chief Analyst of FXsTreet, wrote an article analyzing the prospects of gold technology.

Bednarik pointed out that before the release of US non farm payroll data, the price of gold consolidated this week's gains and there is room for further increase.

At 20:30 Beijing time on Friday, investors will receive the US June non farm payroll report. It will provide the latest clues for the market to further assess the state of the US labor market and the outlook of the Federal Reserve's monetary policy.

Bednarik wrote that the US Bureau of Labor Statistics (BLS) will release its Non farm Employment Report (NFP) on Friday, and market participants expect the US economy to add 190000 new jobs in June, down from 272000 in May. The unemployment rate is expected to stabilize at 4%, while the average hourly wage is expected to increase by 3.9% year-on-year, a slowdown from the previous 4.1%. If these data are confirmed, it may trigger speculation about a rate cut in September and push the US dollar further down in the foreign exchange market.

On Wednesday, the ADP employment report, known as "small non farm", showed that the number of people employed by private enterprises increased by 150000 in June, marking the third consecutive month of decline and reaching a new low since January this year, lower than economists' expectations of 163000 people.

Matt Simpson, senior analyst at City Index, said that the ISM services report was weaker than expected, which was a gift that Fed dovish individuals had been waiting for before Friday's non farm payroll report. If the non-farm employment report confirms these observed economic cracks, then gold prices are expected to rise to $2400 per ounce.

According to data released by the United States on Wednesday, the ISM non manufacturing index in June plummeted to 48.8, the lowest level since May 2020, indicating a contraction in the service industry.

Analysis of Short term Technical Prospects for Gold

Bednarik stated that from a technical perspective, the daily chart shows that gold prices are still fluctuating narrowly around the weekly high of $2364.83 per ounce, losing momentum, but the risk of gold price trends still tends to be upward. Gold prices are orthogonal above the 20 day simple moving average (SMA), while the 100 day and 200 day moving averages continue to move below it. At the same time, the technical indicators are still at a positive level, but there is no directional intensity.

Bednarik added that in the short term, according to the 4-hour chart, there is a possibility of another surge in gold prices. The gold price is developing above all its moving averages, and after breaking through the 100 cycle SMA and 200 cycle SMA, the 20 cycle SMA remains tilted upwards. Finally, the technical indicators remained stable but remained near overbought, with no signs of running out of upward space.

Bednarik provides the latest important support and resistance levels for gold prices:

Support level: 2341.50 USD/oz; $2329.20 per ounce; 2313.60 USD/oz

Resistance level: $2368.60/ounce; 2387.60 USD/oz; $2400.00 per ounce