Gold formed a double top around $2530 and showed a minor sell-off despite weak US jobs data. It hit a low of $2485 yesterday and is currently trading around $2490.
US economy added 142000 in August, compared to a forecast of 162000. Unemployment came at 4.2% in line with the estimate.
According to the CME Fed watch tool, the probability of a 25 bpbs rate cut in Sep increased to 75% from 70% a week ago.
US dollar index- Bearish. Minor support around 101.20/100.50. The near-term resistance is 102/102.80.
Factors to watch for gold price action-
Global stock market- Bearish (Positive for gold)
US dollar index - Bearish (positive for gold)
US10-year bond yield- Bearish (positive for gold)
Technical:
The near–term support is around $2470, a break below the target of $2449/$2430. The yellow metal faces minor resistance around $2520 and a breach above will take it to the next level of $2525/$2530.
Indicator (4-hour chart)
CCI (14)- Bearish
CCI (50)- Bearish
Average directional movement Index - Bearish
It is good to sell on rallies around $2517-18 with SL around $2530 for TP of $2470.
