Gold plummeted on Friday after the release of a much better than expected Non Farms Payroll (NFP) number, with 200,000 jobs being created in October vs $100,000 expected.
Gold fell as far as $1281 before finding support, though this morning is seeing follow through selling and a low so far of $1279.
The dollar is now trading well over 81, after the "double whammy" of an ECB rate cut on Thursday and the NFP number on Friday. We commented previously that the dollar will be key to gold's fortunes for the rest of 2013, with the break and close above 8$1 potentially very bearish for gold.
The fact that gold has broken below the 6$1.8% retracement level at $1294 is also an ominous indicator and suggests gold is about to return to $1250 as a minimum. A break of $1250 will see a swift return to key support at $1180.
Support can be found at $1277, $1260, $1250, $1207 and $1180. A break of $1$180 would have serious bearish implications for gold and suggest a decline to $1000-$1050 as a minimum.
Resistance can be found at $1291, $1300, $1310, $1320-$1322, $1328-$1330, $1338-$1342, $1352-$1355 and $1360. A break above $1360 would be the first suggestion of a new bull trend, though it would take a break of $1434 to confirm this was the case, with a target of $1525 as a minimum.
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Gold Dropped Following Better Than Expected NFP
Published 11/11/2013, 11:20 PM
Updated 07/09/2023, 06:31 AM
Gold Dropped Following Better Than Expected NFP
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