On Friday, the price of December gold futures on COMEX fell by 0.5% to 1141.40.
A significant fall in the pair started last Wednesday after the statement from Fed officials that at December’s meeting the regulator is going to evaluate the state of the American economy in order to increase interest rates.
Now focus of the markets will be on the US labour market data for October that is due on Friday. If figures come out worse than their forecasts a possibility of the rate increase in December significantly falls, which would pressure the USD and support gold.
Support and resistance
A breakdown of the level of 1136.00 (23.6% Fibonacci correction) resumes a downward trend with targets at 1105.00, 1085.00 (year lows).
At the same time, a price return above the level of 1167.00 would resume an upward movement and send the pair to the levels of 1176.00 (ЕМА50 on the weekly chart), 1193.00, 1200.00 (upper border of the ascending channel on the daily chart).
OsMA and Stochastic on the 4-hour and daily charts recommend short positions, and start turning to sales on the weekly chart.
Support levels: 1136.00, 1112.00, 1105.00.
Resistance levels: 1147.00 (ЕМА50 on the daily chart), 1156.00 (ЕМА144), 1167.00 (ЕМА200 and 38.2% Fibonacci correction), 1176.00.
Short positions can be opened after the breakdown of the level of 1136.00 with targets at 1129.50, 1122.50 and stop-loss at 1140.00.
Long positions can be opened after the breakout of the level of 1141.00 with the target at 1150.00 and stop-loss at 1138.00.