Gold
Gold is a classic case of technical levels since yesterday. Gold price fired after our xauusd signal and reached our target. It retraced back to test lows from high. Gold made high near 1291$ and came back to test low of 1279.50$.
In my yesterday’s gold analysis I mentioned support at 1278$ and resistance at 1292$. Gold price reversed from our resistance level and did not broke our support too. This is simple case of how technical level works in financial markets.
Yesterday major pressure came in gold when dow jones tried to recover and reversed from 25830 to test 26130 within hours. It was a sharp short covering which lifted dow jones and gave fake breakout to buy as if dow jones is testing new lifetime highs. This build pressure in comex gold and resulted in lows despite in positive trend zone.
Currently gold price trading at 1282.80$. Good support in xauusd chart stands at 1275$. If market break and sustain below 1275$. Then expect good pressure in this precious metal till 1267$- 1260$ today.
Resistance in comex gold chart stands at 1292$. This is major hurdle, If traders break and sustain above 1292$. Then expect good rise in this major commodity till 1299$- 1307$.
Conclusion: We have US unemployment claims data today. It would be crucial to see how much unemployment claims number change from last week. Higher unemployment claims may result in weaker dollar index and higher gold prices. Lower unemployment claims may result in higher dollar and lower gold prices. Current trend is flat to weak for now. Look for better dips before initiating buy in this major commodity.
For crude oil & mcx intraday levels watch my youtube video here