Gold prices (XAU/USD) rose 0.46% over the course of the week and settled at $1320.26 an ounce on Friday. Without doubt last week’s main event was release of the government’s jobs report. Although Thursday’s stronger than anticipated figures stoked speculation of a hawkish stance from the Federal Reserve, the adrenalin rush wore off quickly (as I try to remind from time to time, “it is not the news but the market reaction to news that matters”). While some feel solid improvements in the U.S. economy bolsters the case for Federal Reserve officials to raise the interest rates earlier than they forecast, others think that the central bank will not be in a hurry to alter the monetary policy.

The XAU/USD pair has been resilient to the bears’ attacks since the market formed a bottom around the $1240 level. As a result the pair printed higher highs and higher lows for four consecutive weeks. However, encountering resistance in the 1328/31 area (former support/resistance) was not a big surprise of course. For the last couple of weeks, I have been repeating that there is significant resistance between 1328 and 1331. I still think that clearing this resistance is necessary if the bulls want to win the battle expand their grounds. In that case, it is technically possible to see a bullish continuation targeting the 1334 and 1340 levels.

XAUUSD Week 7714

If the bears manage to protect the 1328/31 barrier and force prices to retreat, support can be found between the 1312 and 1306 levels. Technically, a close below 1306 would indicate that it is possible to see pair revisiting the 1300 - 1297 area. Once below 1297, there will be little to slow this pair down until we reach the next key support at the 1286 level.

XAUUSD Daily 7714

Related Articles
  1. Chart Advisor

    2 Short-Term and 2 Longer-Term Trade Ideas

    Two shorter-term and two longer-term trade ideas to consider, based on trends and the possibility of a breakout.
  2. Financial Advisors

    Becoming an Advisor: Why You Should Shadow a Pro

    Meeting with financial advisors and following them during a workday will help you to know if it’s worth the time and effort to make the career switch.
  3. Financial Advisors

    Paying for College: Top Ways to Budget and Save

    Saving for your kids' college education can be complex and expensive. Here are some popular vehicles that help perpetuate college funds.
  4. Financial Advisors

    Financial Fraud: 6 Tips to Avoid It

    A good financial planner should work with you and for you. Ensure you are paying attention if you don't want to be the victim of fraud.
  5. Stock Analysis

    Why Facebook Will Never Charge User Fees

    Understand why Facebook is unlikely to ever charge users; the site's business model of leveraging free users to charge advertisers is highly profitable.
  6. Financial Advisors

    HSAs and FSAs: How to Decide Between Them

    FSAs and HSAs are both excellent ways to help cover a portion of medical costs with pre-tax dollars. Here's how to decide between the two.
  7. Financial Advisors

    When to Develop a Client Mental Capacity Checklist

    Dementia and Alzheimer’s disease aren't uncommon for elderly clients. Here's how advisors can create a plan for when mental capacity becomes an issue.
  8. Retirement

    How Much Money Do You Need to Retire at 56?

    Who wouldn't want to retire early and enjoy the good life? The question is, "How much will it cost?" Here's a quick and dirty way to get an answer.
  9. Retirement

    The Best Strategies to Maximize Your Roth IRA

    If a Roth IRA makes sense for you, here are ways to build the biggest nest egg possible with it.
  10. Investing

    In Search of the Rate-Proof Portfolio

    After October’s better-than-expected employment report, a December Federal Reserve (Fed) liftoff is looking more likely than it was earlier this fall.
  1. Is the Philippines a developed country?

    The Philippines is not a developed country. The nation falls behind on every one of the most common metrics used by economist ... Read Full Answer >>
  2. Does dental insurance cover crowns?

    Dental insurance coverage may vary according to the type of plan and the level of benefits that you have elected. Most dental ... Read Full Answer >>
  3. Is South Korea a developed country?

    South Korea is widely regarded as a developed country. A few index providers still classify the country as developing, but ... Read Full Answer >>
  4. Do plane tickets get cheaper closer to the date of departure?

    The price of flights usually increases one month prior to the date of departure. Flights are usually cheapest between three ... Read Full Answer >>
  5. Is Turkey a developed country?

    There are no hard-and-fast criteria for what defines developed countries. Different organizations set different standards ... Read Full Answer >>
  6. Are secured personal loans better than unsecured loans?

    Secured loans are better for the borrower than unsecured loans because the loan terms are more agreeable. Often, the interest ... Read Full Answer >>

You May Also Like

Trading Center