Gold jumped on Friday after a weaker than expected Non Farms Payroll number saw the dollar tumble, however this type of "knee jerk" reaction almost always retraces entirely within a day or two and we alerted subscribers to this shorting opportunity.
Gold is clearly still entrenched in a down trend, with a series of lower highs and lower lows on the 4 hour chart - rallies should be seen as opportunities to open new short positions, the failure to break the 65 week MA is a significant blow to the bulls and confirms the long term trend remains down.
The dollar continues to power higher and, worryingly for the bulls, gold appears unable to capitalise on the recent correction in equity markets. Oil has tumbled below $100 a barrel in recent trading sessions, adding to the overall bearish picture for gold.
Support can be found at 1286, 1280, 1274, 1263, 1257-1260, 1250-1252, 1237-1240, 1220-1225, 1210, 1200 and 1180. A break of 1180 would have serious bearish implications for gold and suggest a decline to 1000-1050 in the short term - a failure to break the 65 week MA has made this scenario much more likely.
Resistance can be found at 1295, 1302-1305, 1310, 1318-1322, 1325-1326, 1333-1335, 1340-1342, 1352-1354, 1392-1395, 1400, 1420 and 1435. We appear to be witnessing a second failure to break through the key 65 week MA - this would suggest that the intermediate down trend is intact and a retest of 1240 and possibly 1180 is likely.
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Gold Market Update: A Jump On Weak NFP
Published 08/04/2014, 01:14 PM
Updated 07/09/2023, 06:31 AM
Gold Market Update: A Jump On Weak NFP
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