TECHNICAL ANALYSIS

Gold consolidates gains after one week high test


Gold is currently around $ 1,718-19

Gold H1 08-05
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From a technical point of view, this saw gold buyers break above 200 hours MA (blue line) after several days of testing and they ran with the break – asserting a more bullish bias.

But the uptrend stalled at the April 30 high as well as the 23.6 @ 1,720.46 retracement level. These are the key levels to watch for before gold buyers turn to trend line resistance around $ 1,727.

The main thing is to wait until the nonagricultural payroll in the United States is reached before the market starts to move again before the end of the week. If this negative rate gossip accelerates over the next few sessions, it could be a good springboard for gold to go higher.

Key resistance is still seen from the $ 1,739 level before the year’s high is reached at $ 1,747.36. I think a firm break above the latter will trigger stops on a higher fast race in gold. But again, buyers need a kick in the back to really move forward.

At least for now, the short-term bias remains more bullish and the key hourly moving averages will again be where sellers must try to target first before having a bigger say on any pullback .

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