Gold received a boost on Friday after a much weaker than expected Non Farms Payroll number was released (74,000 new jobs v 200,000 expected), with the price surging $20 higher and the dollar coming under pressure as the tapering of QE came into question.
Bizarrely, the unemployment rate collapsed to 6.7%, a sign perhaps of people leaving the employment market and giving up on finding a job.
However, we consider this to be a temporary blip and expect the rally will be seen as an opportunity to open frsh shorts and close out on longs. The high overnight was 1255 and we do not expect 1260 to be breached.
In addition, gold has now reached the long term down trend line on the weekly chart which should hold the price.
The dollar was making headway above the 81 level before the NFP shock, the bulls will be eager to push the index back above that key level this week, whilst stocks continue to steadily climb higher.
Support can be found at 1237-1240, 1220-1225, 1218, 1214, 1210, 1200, 1190, 1188 and 1180. A break of 1180 would have serious bearish implications for gold and suggest a decline to 1000-1050 in the short term.
Resistance can be found at 1250-1255, 1268-1270, 1277-1280 and 1291-1295. A break above 1268 would suggest an end to the short term down trend, though it would take a break of 1300 to suggest a more
significant rally was developing.
Today's video for subscribers looks at the recent trading in more detail and our throughts for our next trade.
Bizarrely, the unemployment rate collapsed to 6.7%, a sign perhaps of people leaving the employment market and giving up on finding a job.
However, we consider this to be a temporary blip and expect the rally will be seen as an opportunity to open frsh shorts and close out on longs. The high overnight was 1255 and we do not expect 1260 to be breached.
In addition, gold has now reached the long term down trend line on the weekly chart which should hold the price.
The dollar was making headway above the 81 level before the NFP shock, the bulls will be eager to push the index back above that key level this week, whilst stocks continue to steadily climb higher.
Support can be found at 1237-1240, 1220-1225, 1218, 1214, 1210, 1200, 1190, 1188 and 1180. A break of 1180 would have serious bearish implications for gold and suggest a decline to 1000-1050 in the short term.
Resistance can be found at 1250-1255, 1268-1270, 1277-1280 and 1291-1295. A break above 1268 would suggest an end to the short term down trend, though it would take a break of 1300 to suggest a more
significant rally was developing.
Today's video for subscribers looks at the recent trading in more detail and our throughts for our next trade.