Gold Price Forecast: XAU/USD could witness a profit-taking decline amid repositioning ahead of key US NFP

Gold price is correcting from the highest level since March 2022 reached at $2,032 on Wednesday. XAU/USD could see dip-buying following a pennant breakout on the 1D chart, FXStreet’s Dhwani Mehta reports.

Pre-US NFP repositioning could sideline XAU/USD buyers

“Gold price is retreating toward the $2,000 mark, below which the pennant resistance-turned-support at $1,988 will be challenged. The next critical line of defense for Gold buyers is seen at the confluence of Tuesday’s low and the pennant support near $1,975.”

“Should Gold bulls jump back into the game, the upside would resume toward the $2,020 figure. Bulls will then reattempt the yearly top at $2,032. Acceptance above the latter is needed to make fresh headways toward the pennant target measured at $2,043. However, the Gold price action is likely to remain choppy ahead of Friday’s US Nonfarm Payrolls data.”

See – Gold Price Forecast: XAU/USD to eye $2,300 on a sustained break above $2,070/75 record highs – Credit Suisse