Gold prices move narrowly within the Bollinger band squeeze in the H1 timeframe, reflecting prices moving in low volatility and tending to be flat.
Gold prices yesterday moved slightly in the range of $2350-$2362 after a strong rally the previous day due to ADP data and unemployment claims that were beyond market expectations which caused gold to soar. Today traders are waiting for the countdown to the NFP data which will be released this Friday
NFP is classified as high impact news which is expected to have a direct impact on financial markets including gold because it is related to the US economy. Gold is often negatively correlated with the USD. NFP is one of the basic economic measurements used by the Fed in its interest rate policy.
Forexfactory data shows NFP forecast is 191k with previous revised data of 272k. The discrepancy between actual data and forecast further encourages traders to take actions that can increase volatility.
In the H1 timeframe, we witness the formation of Bollinger band pressure due to low volatility. Often a Bollinger band breakout will be followed by an extreme move.
Meanwhile, on the D1 timeframe, the price is now moving close to the upper band line which draws a flat channel, this indicates that the price is in the market range. However, if today's NFP news can cause a change in structure, if there is a breakout in the upper band, it is hoped that gold will reach a higher range, roughly $2376.
Even though the current price is still sideways, gold's potential is supported by geopolitical risks and central banks are buying more gold as reserves, especially in BRICS member countries which are already anti-dollar.
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Gold prices yesterday moved slightly in the range of $2350-$2362 after a strong rally the previous day due to ADP data and unemployment claims that were beyond market expectations which caused gold to soar. Today traders are waiting for the countdown to the NFP data which will be released this Friday
NFP is classified as high impact news which is expected to have a direct impact on financial markets including gold because it is related to the US economy. Gold is often negatively correlated with the USD. NFP is one of the basic economic measurements used by the Fed in its interest rate policy.
Forexfactory data shows NFP forecast is 191k with previous revised data of 272k. The discrepancy between actual data and forecast further encourages traders to take actions that can increase volatility.
In the H1 timeframe, we witness the formation of Bollinger band pressure due to low volatility. Often a Bollinger band breakout will be followed by an extreme move.
Meanwhile, on the D1 timeframe, the price is now moving close to the upper band line which draws a flat channel, this indicates that the price is in the market range. However, if today's NFP news can cause a change in structure, if there is a breakout in the upper band, it is hoped that gold will reach a higher range, roughly $2376.
Even though the current price is still sideways, gold's potential is supported by geopolitical risks and central banks are buying more gold as reserves, especially in BRICS member countries which are already anti-dollar.
View attachment 7163
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