Fundamental Analysis
The precious metal is moving towards the upside because of the anxiety that traders are suffering over the decision taken by Bejing. The Chinese government wants to reverse its action of supporting the stock market through their purchase. This has triggered a sell off over in China and Europe and traders are hedging their bets by pilling up their positions in yellow metal.
However, looking beyond this, what is really significant is the upcoming US non farm payroll data and this will make or break the current rally. If we see the average hourly income and labor market strengthening further, this will trigger a sell off for gold.
Technical Analysis
The price is trading above the 100 day shown in red moving average on a 4 four hour time frame. This confirms that the bears are still not full control of the price. IF we cross the 50 day moving average shown in yellow color, it will further strengthen the upward move.
Important Zone
110-1120 Support
1170-1162 Resistance
DISCLOSURE & DISCLAIMER: The above is for informational purposes only and NOT to be construed as specific trading advice. responsibility for trade decisions is solely with the reader.
By Naeem Aslam