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Gold Market Update: A Bounce Back

ByGoldTradingExperts.com
Published 10/07/2014, 04:40 AM
Updated 07/09/2023, 06:31 AM

LONG TERM TREND: BEARISH
INTERMEDIATE TERM TREND: NEUTRAL/BEARISH
SHORT TERM TREND: BEARISH
VERY SHORT TERM TREND: BULLISH

After a stronger than expected Non-Farms Payroll (NFP) number on Friday, the dollar surged higher, almost reaching 87 before finding resistance. As expected, in the face of such dollar strength gold cratered, tumbling as low as 1183 before finding support at the crucial major support line.

Yesterday gold bounced back as the dollar gave back all of Friday's "knee jerk" reaction gains, highlighting beautifully why one should always be wary of trading on major news days. We now expect a relief rally towards 1240 before the next leg down which is expected to smash through major resistance at 1180 and see gold fall towards 1000-1050.

Support can be found at 1203-1205, 1200 and 1180-1183. A break of 1180 would have serious bearish implications for gold and suggest a decline to 1000-1050 in the short term - the failure to break the 65 week MA and the break down of the triangle pattern on the daily chart makes this scenario much more likely, particularly as gold has now reached and tested this crucial support level.

Resistance can be found at 1223, 1231, 1235, 1242, 1257-1258, 1263, 1271-1273, 1277, 1290-1292, 1300-1302, 1310-1312, 1322-1325, 1333-1335, 1340-1342, 1352-1354 and 1392-1395. A second failure to break through the key 65 week MA confirms that the intermediate down trend is intact and a retest of 1180 suggests a break of that level is likely.

Today's video for subscribers looks at the recent trading in more detail and our strategy for our next trade.

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