The price of XAU USD was closed in 1813, which is above the resistance 1800 but still maintains below 1820. On Thursday gold broke the support 1800 and got down till 1780, 1780 is the lowest level for the previous week. XAU USD has been on the front foot in recent trade. On the back of a downbeat US labour market report for January. Traders suspect that a soft start to the year for the labour market will encourage US monetary policymakers to keep their foot on the gas with regard to ease financial conditions and might benefit XAU USD.
A Weekly candle from XAU USD was closed in 1814-1813 that shows bulls prior to 1830. But getting 1830 first it has to break 1820 resistance clearly. I make my analysis on the daily chart, and you can see that the XAU USD pair has touched its support 1780 and now bouncing off of that support shows bulls. I have also mentioned the coming supports in my chart. The first support we almost had and the second support is 1740. Last time when XAU USD broke 1800 support then it had the lowest level of 1764 and then started bulling and touched the top level.
What I expect of XAU USD if it breaks 1820 again, then we will definitely see 1840 break 1840 will lead us to the higher side. But if it fails to capitalize above, then will go down and will taste 1764 which is the bottom of last month. Looking ahead for XAU USD, traders ought to continue watching the event in equity and bond markets. For most of the week USD stock and bond yields all rallied in bearish combinations for XAU USD.