The price movement of gold at the end of last week would have disappointed bullish traders after falling sharply on Friday from tracing a triple top at 1833$ per ounce.

Due to the optimistic forecast of the U.S. jobs report this month, the price of this heaven asset in reversing to dollar, is losing its buying trend from investors.

It can be said that the wait of investors on the latest data of the U.S. jobs report including non-farm payrolls which are scheduled to release on Friday this week will mainly indicate the health of the U.S. labor market.

Cited in Investing.com on August 02, Stephen Innes, managing partner at SPI Asset Management, said that: “the market is fearful of a stronger payrolls data, which will make the dollar stronger […] it will probably keep them from strapping on a lot of interest rate sensitive risks.

“the data will give investors more insight into the timeline for the U.S Federal Reserve to begin asset tapering by October 2021 if the next two U.S. jobs report each show employment rising by 800,000 to 1 million.”

Another commodities analysis article in Investing.com on the same day reported that: “[…] the release of the monthly US jobs reports and the direction of gold, oil and a few other key commodities could well depend on how healthy the labor market in the world’s leading economy is.It can be argued that every US jobs report holds markets hostage ’til its release.”

As the data release of the U.S. jobs report on Friday will answer the US dollar’s direction, the price of gold is now moving in a market box in the range of 1755$ to 1840$ per ounce after posting a Doji candlestick on Monday.

In the daily chart, while gold prices are moving downtrend, traders can start placing sell position at 1840$, with a stop-loss function setting at 1870$ per ounce.

However, if the expectations in the U.S. economic data turn negative, traders can wait to place a buy positon at 1755$ per ounce with a stop-loss function at 1725$ per ounce.

Analyzed by: Mr.Chhea Chhayheng, Independent Analyst