Throughout this week, the price of gold has grown and finally reached the level of 1200.00. The “bulls” tried to consolidate above this level and win back positions lost during the previous week; however, strong resistance level prevented these attempts. The level of 1190.00, which coincides with Fibonacci retracement of 23.6%, had prevented the decline in price for some time, but eventually this level was broken down. Yesterday, the pair XAU/USD traded at the level of 1190.00-1180.00.
Today, US labor market statistics will become known; therefore volatility in the pair can increase in the afternoon. Forecast of Non-Farm Payrolls is favourable. It is also expected that unemployment rate in the USA will also reduce. If the forecast proves to be correct, the USD will grow and demand for gold will drop. The pair XAU/USD can decline to 1170.00.
Support and resistance
Resistance levels: 1190.00, 1200.00 and 1215.00. The latter one is the main target of the “bulls”. Support levels: 1180.00, 1170.00 and 1155.00.
Long positions can be opened above the levels of 1190.00 and 1200.00 with the target of 1215.00. Sell positions are recommended from the level of 1190.00 and below the level of 1180.00 with the long term target of 1155.00.