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Gold Market Update: Market Found Support At $1,210

ByGoldTradingExperts.com
Published 12/09/2013, 05:20 AM
Updated 07/09/2023, 06:31 AM
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The release of the Non-Farms Payroll (NFP) number on Friday saw increased volatility, with the stronger than expected number and reduced unemployment rate initially seeing gold sell off sharply, as expected.

However, the market found support at $1210 to form a potential "double bottom" on the daily chart - this saw the shorts covering before the weekend, with the price subsequently rising quickly to the upper boundary of the down trend channel at $1245.

This area provided resistance and the price dropped back to settle around unchanged on the day, demonstrating perfectly why trading or initiating new positions on or around NFP day should be avoided if at all possible. This morning, gold has quietened down and is trading around $1230.

After initially surging higher on Friday in the wake of the NFP data, the dollar is weaker, continuing the softer tone of the past month that has seen the dollar fall by $1.6%. Worrying for the gold bulls is that in the same time frame, gold has fallen even more sharply and is down 7.3%, failing to take advantage of the favourable dollar action.

Support can be found at $1223-$1227, $1217, $1212, $1200-$1207 and $1180. A break of $1180 would have serious bearish implications for gold and suggest a decline to $1000-$1050 in the short term.

Resistance can be found at $1235, $1245, $1250, $1260, $1270, $1277-$1280 and $1291-$1295. A break above $1295 would suggest an end to the down trend, though it would take a break of $1360 to confirm this was the case.

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