Gold prices grew amid fixation of profits on short positions and prior to the publication on the NFPR.
As gold does not yield any interest of dividends, it cannot compete with high-yielding assets, especially when the USD is growing and borrowing costs are rising.
From the fundamental point of view, gold is going to continue falling as the Fed pursues tightening monetary policy. If the data on the NFPR today comes out weak, there can be a correction in the pair.
Support and resistance
After a sharp fall in July, the pair XAU/USD is trading within the downward channel between 1110.00 and 1078.00. The pair has almost reached the level of 1070.00 (EMA144 on the monthly chart) and moves towards 950.00 (EMA200).
On the 4-hour and daily charts, OsMA and Stochastic remain near the zero line, but turning to signal purchases and indicate a start of the short-term correction.
The correction is possible up to 1110.00, 1120.00, while the price consolidation above the area of 1132.00-1149.50 would reverse the pair upwards.
Support levels: 1082.00, 1078.00, 1072.00.
Resistance levels: 1110.00, 1120.00, 1132.00.
Open short positions from the current levels and from 1095.00, 1110.00 with targets at 1080.00, 1078.00, 1072.00, 1000.00, 950.00 and stop-loss at 1122.00.
Long positions can be opened after the breakout of the level of 1132.00 with targets at 1140.00, 1149.00.