Downbeat China PMIs also please Gold sellers

Considering China’s position as one of the world’s biggest Gold consumers, the latest disappointment from the Dragon Nation’s official Purchasing Managers Indexes (PMIs) for April exert downside pressure on the XAU/USD. During the weekend, China’s official NBS Manufacturing PMI disappointed markets with 49.2 figures for April, versus 51.4 market forecasts and 51.9 prior readings. It’s worth noting that the Non-Manufacturing PMI rose past 50.4 expected figures to 56.4 but remained below 58.4 reported in March.

A busy week ahead for XAU/USD traders, Fed, NFP in focus

Although markets in China, Europe and the UK are off on Monday, a slew of central bank announcements and top-tier data from the United States, Eurozone, Australia and New Zealand are likely to offer a busy week ahead to the Gold traders. Among them, Wednesday’s Fed meeting, Thursday’s ECB monetary policy announcements and Friday’s US jobs report for April will be crucial to watch for the Gold price predictions. Should the Fed hawks keep the reins and the US economics are firmer as well, the Gold price may witness the much-awaited pullback.

Gold price technical analysis

Gold price seesaws within a nearly $30.00 trading range as it consolidates the early March to the mid-April run-up.

That said, a six-week-old ascending trend line joins the 200-bar Simple Moving Average (SMA) to put a short-term floor under the XAU/USD price near $1,980.

On the contrary, a fortnight-old downward-sloping resistance line, close to $2,007 at the latest, guards immediate recovery of the Gold price.

It’s worth noting, however, that the sluggish signals from the Moving Average Convergence and Divergence (MACD) indicator and a steady Relative Strength Index (RSI) line, placed at 14, suggest a continuation of the metal’s sideways move.

Meanwhile, multiple upside hurdles near $2,010 and $2,030 can test the XAU/USD bulls past $2,007 before directing them to the recent peak of near $2,050.

Alternatively, a downside break of $1,980 needs validation from the late March swing low around $1,935 before welcoming the Gold bears.