Gold market analysis: if it breaks through the resistance zone of $1832-34, it will mark a new round of bullish breakthrough
The $1,823 area touched on Monday was a multi-week high for gold and now appears to be an immediate resistance level. Then there is a resistance area of 1,832-34 USD. If this area is decisively broken, it will mark a new round of bullish breakthrough and trigger a new round of short covering.

On Thursday, due to the upcoming US non-agricultural data, spot gold was cautiously traded. Its closing price fell slightly to close at $1,809.68 per ounce. The overall situation continued to be sideways. After tonight's non-agricultural period, the trend of gold may be broken.
On Thursday (September 2), the U.S. dollar hit a new low of 92.20 since August 5. The number of initial claims for unemployment benefits in the United States in the week of August 28 was 340,000, which was lower than market expectations of 345,000, the lowest since the outbreak. Although the number of people claiming unemployment benefits for the first time slightly exceeded expectations, the risk appetite caused by the Fed’s dovish signal continues; even if the yields of the U.S. dollar and U.S. debt fell, it still failed to support the rise in gold prices. Gold traders are currently hesitating. On the one hand, investors now seem to be convinced that the Fed will wait a longer period of time before deciding to cancel the large-scale stimulus measures during the epidemic. The disappointing ADP report on Wednesday further exacerbated the above speculation, which showed that the number of employees recruited by US private sector employers in August was much lower than expected. This data has raised doubts about the recovery of the US labor market and further reduced the prospects of the Federal Reserve raising interest rates early. The weak tone surrounding US Treasury yields clearly illustrates this point. This keeps the dollar bulls on the defensive near a one-month low and may provide some support for dollar-denominated commodities, including gold. On the other hand, investors may not make any aggressive bets, but would rather stay on the sidelines before the closely watched monthly US employment data is released on Friday. The well-known non-agricultural employment report will provide new clues to the possible timing of the Fed's reduction of its bond purchase program. In turn, this will play a key role in determining the next phase of non-yielding gold.
From the perspective of technical graphic trends, from the current level, the $1,823 area touched on Monday is a multi-week high and it now appears to be a direct resistance level. Then there is a resistance area of 1,832-34 USD. If this area is decisively broken, it will mark a new round of bullish breakthrough and trigger a new round of short covering. Subsequently, the price of gold may accelerate to the $1,852 per ounce area. On the other hand, this week's volatility low, just before the $1,800 mark, may continue to restrain the recent downturn. If the continued weakness below this level may trigger some technical selling, and pull the gold/dollar back to the horizontal support level near 1776-74 US dollars. If this strong bottom is broken, short-term preferences may turn bearish.
Bank of China Guangdong Branch Wang Gang
Original title: Gold continues to be narrowed, non-agricultural will break the game tonight
Source: Bank of China official website
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