Gold pulled back from the 2-weeks high last Friday. It had traded between 1746-64 throughout the Asian & European session. Once the US employment figure was released, the gold price jumped all the way to the 1780 level. But it had retraced quickly before the day's end, the week ended near 1756, up slightly by USD 2.
The buying momentum from last Friday's US employment has all been absorption by the market, while the gold is now settling once again within the 1746-64(2) trading zone. Trendline (2) has been breached early in the Asian session today, the price is getting weak and it may touch again the bottom of the range in the next 24 hours.
The buying support last week below 1760 has been canceled out by the long upper wick(3) on the daily chart . If the price can break the support at 1745 and carry the selling momentum this week, it should be able to touch 1730 or lower.
The L-T downtrend is accelerating on the daily chart , from a gentle trendline (4) to (4.1), and the newly formed (4.2). The key support is at 1725. If the price breaks out from it, the target can be set at 1680 or lower.
S-T Resistances:
1770
1764
1760
Market price: 1757
S-T Supports:
1755
1750-21
1744-45
Risk Disclosure: Gold Bullion/Silver ("Bullion") trading carries a high degree of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. This article is for reference only and is not a solicitation or advice to trade any currencies and investment products . Before deciding to trade Bullion you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment or even more in extreme circumstances (such as Gapping underlying markets) and therefore, you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with trading Bullion, and seek advice from an independent financial advisor if you require. Client should not make investment decision solely based on the point of view and information on this article.
