FxWirePro: Gold trades weak on strong dollar, good to sell on rallies
Gold has shown a minor decline yesterday after better than expected US jobs data released on Friday. Markets doesn’t show any reaction for nomination of Jerome Powell as new Fed Chairman and he is expected to follow same…
Gold has shown a minor decline yesterday after better than expected US jobs data released on Friday. Markets doesn’t show any reaction for nomination of Jerome Powell as new Fed Chairman and he is expected to follow same policies of Yellen. The yellow metal dipped till $1268 and is currently trading around $1269.43.
U.S economy has added 216K jobs in the month of Oct slight improvement after the hurricane and unemployment rate at 4.1% .But wage growth disappoints. It has slumped to 2.4% year over year.
US Dollar index recovers slightly after hitting low of 94.41. The index is facing strong resistance at 95.20 (161.8% fibo) and any break above targets 96/96.51 level. It is currently trading around 94.95. The pair is facing major support near 94.40 (10- day MA) and any break below confirms minor weakness till 93.90 (100- day MA)/93.58 (55- day EMA)/92.60 likely.
Technically gold is facing near term resistance around $1285 (55- day EMA) and any break above will take the pair to next level till $1290 (61.8% Fibo)/$1298. Overall bullish continuation can be seen if it closes above $1298 (50- day MA).
Gold’s near term support is around $1262 (61.8% retracement of $1204 and $1357.90) and break below will drag the commodity down till $1250.The yellow metal should close below $1250 for major trend reversal.
It is good to sell on rallies around $1278-$1280 with SL around $1286 for the TP of $1262/$1250.
