The price of gold remains under pressure after the publication of Friday’s data on the US labour market for November. The Unemployment Rate remained unchanged at 5.0%, while the Nonfarm Payrolls came out better than forecasts. The data indicates a stable condition of the labour market and gradual recovery of the US economy that removes last barriers for the Fed to hike interest rates this month. Fed Funds represent almost 80% probability of the rate hike in December.
Thus in the medium term amid gradual tightening of in the US gold will continue falling.
Support and resistance
After reaching the key at 1070.00 (EMA144 on the monthly chart), the pair remains in correction that could continue to the levels of 1085.00 (EMA144), 1092.00 (EMA200 on the 4-hour chart), a breakout of which would send the pair to 1100.00 (EMA50 on the ) and 1118.00 (23.6% Fibonacci correction).
On the , OsMA and recommend long positions. On the 4-hour chart, is also turning to purchases.
Support levels: 1070.00, 1060.00, 1053.00, 1050.00, 1045.00.
Resistance levels: 1085.00, 1092.00, 1105.00, 1110.00, 1118.00.
Pending sell orders can be placed from the level of 1085.00, 1092.00 with targets at 1070.00, 1060.00, 1050.00, 1010.00 and stop-loss at 1095.00, and from the level of 1060.00 with targets at 1050.00, 1010.00 and stop-loss at 1072.00.
Pending buy orders can be placed from the level of 1095.00 with targets at 1105.00, 1110.00, 1118.00 and stop-loss at 1090.00.