Yesterday the price of gold significantly fell, from $1125.26 to $1101.17 per ounce amid the USD strengthening and the stock markets rebound.
The market recovery came about as the strong publication from the US Department of Labor showed jobs growth of 430 thousand to 5.72 million vacancies in total, which is the highest number since December 2000 (forecasted increase to 5.29 million vacancies).
On top of that, gold remains under pressure amid the September Fed meeting, when the regulator could increase interest rates in the US.
Support and resistance
Support levels: 1101.17 (yesterday low, the bottom MA of Bollinger Bands), 1093.82 (11 August low), 1080.82 (August low).
Resistance levels: 1108.90 (local high), 1117.00 (23.6% Fibonacci), 1127.50 (38.2% Fibonacci, the middle MA of Bollinger Bands).
Short positions can be opened after the breakdown of the level of 1100.00 with targets at 1090.00, 1082.00 and stop-loss at 1104.00.
Long positions can be opened from the level of 1110.00 with targets at 1117.00, 1125.00 and stop-loss at 1105.00.