Gold Challenges Yearly Highs Of $1375
Alexandros Yfantis | Aug 05, 2016 06:06AM ET
Gold price is challenging its recent highs at $1,367 and its yearly highs at $1,375. With the announcement of the US Non-Farm Payrolls today we expect volatility to rise and to see wide price movements. Gold price usually starts to fluctuate before the NFP numbers are announced, so be careful of stop hunters.
Blue line - resistance
Gold price is trading just below the short-term resistance of the recent high and above the kijun- and tenkan-sen indicators in the 4 hour chart above. A rejection here will push price towards the cloud support and the 38% Fibonacci retracement near $1,345. Today I believe gold price will reverse lower towards $1,345 and even lower.
Green line - short-term support
Blue lines - bullish channel
In the daily chart gold price is shown near its yearly highs. A break above $1,375 on a daily close will open the way for a push higher towards $1,425-$1,475. A break below the green trend line will open the way for a push towards the yellow rectangle and the Kumo area of $1,300-$1,290. A double top is very possible today. If news is bad for gold, expect a big sell off towards $1,300 or even lower.
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