The Yellow metal has enjoyed a positive start to the new year. After a 12-week bearish run between September and December last year, Gold seems to be more stable. Save one week, Gold has closed positively over the past six weeks. Despite the January NFP release, Gold seems to have difficulty breaking the 1220 key resistance. Do you intend to trade Gold next week? Let’s look at Gold post NFP analysis and key levels ahead of next week.
2 February, AtoZForex – Gold begun the week on the back foot, after having the first bearish week since December 2016. Last week, Gold opened at 1207 and closed 175 pips lower at 1191.13. This week however, the bullish run resumed as price opened at 1190.30 and currently trades at 1216.30. This represents a 250 pips rise in price.
Having said that, the bulls may have to be more patient before recording further gains. This is because price has run into a key resistance level. The 1220 level is key as price has failed to penetrate it on three attempts this year. Over the past three weeks the bulls have tested the level but have failed to penetrate.
The 1220 level has also been a significant turning point in the past. The level stands as the August and September 2016 lows as well as the March, April and May 2015 highs. A lot will depend on how the weekly chart closes today. If the level eventually gives in, then more gains will ensue.
Gold post NFP analysis: Another sell-off over horizon?
Overall, Gold remains in a down trend as a series of lower highs and lower lows are evident. If the 1220 level holds once again, bears may be attracted as that strong resistance is a logical level to short. If the down trend continues, we could see a dip to the December 2016 lows at 1223.60 and then further below is the January 2016 key support level at 1078.50.
What is your technical Gold analysis post NFP? Let us know in the comments section below.