Gold Bounced Off $1,300

Despite its repeated attempts to break below the support at $1,300, which coincided with (MA)89 on the daily time-frame, Gold bounced off that level after the announcement of the US change in Non-Farm Payrolls last Friday and is currently testing the resistance at $1,330 again. More importantly, this retracement also formed a very obvious hammer candlestick on the weekly time-frame above the aforementioned support at $1,300, so I think we can expect a further move to the upside. The first target will likely be around $1,350 - $1,360, but I think we cannot exclude a further move to the upside towards $1,400, especially if Gold breaks above $1,1360.

Today Are the US Non-Farm Payrolls

In a few hours the monthly data about the US change in Non-Farm payrolls will be released, as it usually happens almost every first Friday of the month. I, personally, prefer to close all my positions and wait to see the results of such high impact events, especially when I know exactly when they’re scheduled to occur, as I am not fond of the whipsaws they usually provoke before the market starts moving in a single direction, not to mention that in the hours before the Non-Farm Payrolls are released the market is usually just consolidating. Today hasn’t been any different than usual, and I, like many other traders out there, am expecting the news with bated breath.

Gold Has All But Reached $1,300

After a long consolidation and several days of slowly moving to the downside Gold has finally all but reached the crucial support level at $1,300. The question is whether it will be able to break below that level or not. A possible breakout below that support could lead to a further drop towards $1,250 or even towards $1,230, and if Gold bounces off of it, it will likely climb back towards $1,350 – $1,360. All that said, I think it is highly unlikely for us to see any resolution to that question today. I think Gold is likely to consolidate around $1,300 until the US Non-Farm Payrolls tomorrow, and its reaction to the data that will be released will provide us with an answer.