Gold has been consolidating in a narrow sideways range for the past few days, trading with a slight downside bias today in anticipation for the employment report. A breakout of this trading range is expected following the release of the report, and accordingly, we will base our strategy on the possible outcomes of the employment report.
Support: 1240.00, 1233.00, 1225.00, 1210.00, 1200.00
Resistance: 1248.00, 1260.00, 1270.00, 1290.00, 1300.00
Recommendation Scenario
1: If Non-farm Employment change: at or above 165,000 and Unemployment Rate at 7.5 or below Short gold targeting 1220.00,1200.00 and 1180.00 Scenario 2: If Non-farm Employment change: below 160,000 and Unemployment Rate at 7.6 or above Long gold targeting 1270,1300.00 and 1320.00 We prefer to avoid any other scenario as it will be a mixed number and may cause sharp volatility.
Support: 1240.00, 1233.00, 1225.00, 1210.00, 1200.00
Resistance: 1248.00, 1260.00, 1270.00, 1290.00, 1300.00
Recommendation Scenario
1: If Non-farm Employment change: at or above 165,000 and Unemployment Rate at 7.5 or below Short gold targeting 1220.00,1200.00 and 1180.00 Scenario 2: If Non-farm Employment change: below 160,000 and Unemployment Rate at 7.6 or above Long gold targeting 1270,1300.00 and 1320.00 We prefer to avoid any other scenario as it will be a mixed number and may cause sharp volatility.