Gold commentary [07/08/17]
The strong non-farm payrolls data on Friday saw the U.S. dollar strengthen in general and this weighed on gold as the week drew to a close, falling 10 dollars to the 1258.50 area. Whether the dollar strength is temporary or more permanent has yet to be seen, and in a data light week unlikely to be answered anytime soon.
As a result gold will be somewhat at the mercy of geo-political headlines in the coming days and may also suffer if the recent dollar weakness continues to correct.
The price action on Friday has left gold looking left then spectacular as we start the week’s trading in Asia, unchanged at 1258.50 and hovering above two keys supports. The 100-day average at 1252.85 and it’s 50% Fibonacci retracement at 1249.25, the latter being a pivot level for price action of late.
Last week’s resistance levels at 1274.20 and 1282.10 are now somewhat distant and unlikely to be challenged in the first half of the week at least.
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