Gold Price – Chances of More Upsides Emerge Vs US Dollar
- – Gold price was recently seen trading higher vs the US Dollar for a move past $1165.
- – There was a break above a bearish trend line on the daily chart of Gold price at $1135.
- – In the US, the recent nonfarm payrolls release by the US Department of Labor was disappointing, as it came in at 156K vs the 178K forecast.
US Nonfarm Payrolls
In the US this past Friday, there was a major release, as the nonfarm payrolls report was published by the US Department of Labor. The forecast was 178K in Dec 2016, compared with the last 178K.
However, the result was on the lower side, as the US NFP came in at 156K. It was even counted less, as the last reading was revised up from 178K to 204K. Overall, there was a difference of around 50K in Dec 2016. The report added that the “number of long-term unemployed (those jobless for 27 weeks or more) was essentially unchanged at 1.8 million in December and accounted for 24.2 percent of the unemployed. In 2016, the number of long-term unemployed declined by 263,000“.
In short, the result failed to push the price of Gold down, which means there are chances of upsides in the near term towards $1200.
Gold Price Technical Analysis
Gold price started a recovery from the $1122 low against the US Dollar, and moved above $1150. The price during the recent upside move broke a bearish trend line on the daily chart at $1135, which opened the doors for more gains.
The price is currently trading near the 23.6% Fib retracement level of the last decline from the $1352 high to $1122 low where it is facing resistance. However, there is a shift in the technical indicators towards north, suggesting an upside move above $1180.
The next major resistance is near the 50% Fib retracement level of the last decline from the $1352 high to $1122 low. A bearish trend line is also positioned near the same fib level at $1237. However, there are many intermediate resistances before that like $1200, and it won’t be easy for Gold buyers to break these levels.
